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View Diary: Ethanol: Rent Seeking in Action (34 comments)

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  •  You lost me (0+ / 0-)

    Oil firms are providing a commodity and as such should have profits of 0.

    There wouldn't be any oil w/o profits...

    The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.

    by deathsinger on Wed Jun 21, 2006 at 08:20:16 AM PDT

    [ Parent ]

    •  sure there would (0+ / 0-)

      In the long run, if the goods are similar, profits will always equal 0 assuming competition and low cost to entry.

      We see it happen in all sorts of industries, from ag products, to cars, to lumber.

      There wouldn't be any oil industry if profits were LESS then 0.

      •  Low cost to entry? (0+ / 0-)

        in the oil business?  You've got to be kidding me.  The oil business is one of the most capital intensive businesses in existence.

        The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.

        by deathsinger on Wed Jun 21, 2006 at 08:30:22 AM PDT

        [ Parent ]

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