2323Unrestricted Markets–Economic profit earned New firms willenter the industry.What would you do if you were an agricultural producer and your neighbor was producingcotton and making money hand over fist? You have never planted cotton. Your neighboris building a new house, has a new Ford crew cab and a Ford Expedition parked in front ofthe old house. Your neighbor just bought a new pontoon party barge to go along with that18 foot Skeeter bass boat. The neighbor’s kids are racing around the farm with three newHonda four wheelers with the new push button gear changer. And, to top it all off, yourneighbor’s whole family is going on one of those cruise ships to all of those islands in theCaribbean for December holidays! Now, what are you thinking? You want some or all ofthat don’t you? How are you going to get it? Well, you freely enter the cotton market(unrestricted market) and start planting cotton. Are you the only producer that has noticedthe economic profits earned by your neighbor.
This is the end of the preview.
access the rest of the document.