If any company is a single seller in any industry and starts making profits higher than other industries, due to high prices; it will attract competition into its industry, as other capitalists move their capital from less profitable markets to more profitable ones. If the profits are due to lower production costs, which other companies are unable to match, then the company deserves its profit.
- What is profit?
- What is the source of the capitalist’s profits?
- Don’t laborers have a right to a share of the capitalist’s profits, in addition to their wages?
- Isn’t the profit motive evil?
- Is there such a thing as an “excessive profit”?
- What happens when a company starts to make a higher profit in its industry, in comparison to other industries?
- What happens if a business attempts to charge higher prices than its competitors (“gouging”)?
- What happens if a business attempts to charge prices lower than his competitors (“dumping”)?