View Single Post
  #25  
Old 11-28-2017, 05:10 PM
Vorian Atreides's Avatar
Vorian Atreides Vorian Atreides is offline
Wiki/Note Contributor
CAS
 
Join Date: Apr 2005
Location: As far as 3 cups of sugar will take you
Studying for ACAS
College: Hard Knocks
Favorite beer: Most German dark lagers
Posts: 62,779
Default

Quote:
Originally Posted by Colonel Smoothie View Post
Think about it. If you are earning a dollar of profit in any way, it won't last for long. A competitor will simply underbid you. The furthest point they'd be willing to underbid you at is the point of 0% profit, which is the equilibrium price.

I'm okay with you guys saying that profits do exist, but you have to admit then that the market is oligopolistic to a certain extent or that we're in an environment of monopolistic competition and not a competitive market.
You must not have read about insurance regulatory history.

"Underbidding" the competition in an insurance market--especially insurance coverage for structures prone to catastrophic damage--usually results in insolvencies.

And there are usually considerable consequences to the high-level executives of companies that go insolvent that they would generally prefer to avoid.
__________________
I find your lack of faith disturbing

Why should I worry about dying? Itís not going to happen in my lifetime!


Freedom of speech is not a license to discourtesy

#BLACKMATTERLIVES
Reply With Quote
 
Page generated in 0.09278 seconds with 9 queries