Thursday, July 7, 2011
Is Business a zero sum game?
This is a very important question that needs to be answered. Is business a zero sum game?
By definition, business is about trade. Since population is a factor of demand, tradesman is a factor of business. Therefore, in business, assuming at the supply-demand equilibrium, the entry of a tradesman into the equation meant a reduction in demand for existing tradesmen to keep the supply-demand point fixed.
The possibility occurs in monopolistic or oligopolistic industries.
So, if you ever decide to go into business in such industry, expect resistance to your entry!
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