Re: compitive markets

Posted by lovekesh on Apr 05, 2012; 3:49am
URL: http://discussion-forum.276.s1.nabble.com/compitive-markets-tp7438272p7438743.html

yes vasudha.....but there are two firms with different demand functions. Why long run profits would be zero. I would consider if there were two types of industries instead of two types of firms. So, in long run, more n more entrepreneurs would join in and profits wld be no more than accounting profits.