Profit Dynamics Explained
Capital flows between industries are driven by profit rates, with high profits indicating under-capitalization and low profits signaling over-capitalization. This dynamic regulates investment, ensuring a balance across sectors. While the uniformity of profit principle generally holds true, external factors like taxes and asset bubbles can disrupt these patterns, though such bubbles are relatively rare.In this clip
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The Science of Everything Podcast
Episode 16: Profits and Competition
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