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Zero Long Run Profits

by Jadrian

Tom gets an offer that someone is interested in buying his business. After some though, Tom chooses not to sell his clothing rental business and then finds out that the potential buyer will now try to drive him out of business by setting up across the street. Monopolistic competition allows for easy entry and exit into a market that is profitable and results in a reduction in long term profits.

P&R: Rent-A-Swag is for Sale

Tom gets an offer to sell his business

from Parks and Recreation (2013)
Creator: Michael Schur and Greg Daniels
Distributor: Netflix
Posted by Jadrian
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