In economic competition theory, the zero-profit condition is the condition that occurs when an industry or type of business has an extremely low (near-zero) cost of entry to or exit from the industry. In this situation, some firms not already in the industry tend to join the industry if they calculate that they will make a positive economic profit (profit in excess of the cost of acquiring investible funds).
In economic competition theory, the zero-profit condition is the condition that occurs when an industry or type of business has an extremely low (near-zero) cost of entry to or exit from the industry. In this situation, some firms not already in the industry tend to join the industry if they calculate that they will make a positive economic profit (profit in excess of the cost of acquiring investible funds).
Source: Wikipedia "Zero-profit condition" · CC BY-SA 4.0
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