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Originally posted by Monster7
How are they going to lose sales/profits they don't have?
There has to be a product to lose sales/profits over..
Haven't you ever taken an economics class? There is accounting profit AND Economic profit. Nissan would be making supernormal profits due to the fact that lack of competition would make it a type of monopoly. Naturally Toyota would not want to just let nissan earn all the profit when it can join in and also make profit, dropping nissans supernormal profit to normal profit. Do some research on oportunity cost also. A product not made is profit lost in the terms of opportunity cost.