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For your discussion this week, a good starting point would be to differentiate economic profit from accounting profit. Once you understand that difference, it makes

For your discussion this week, a good starting point would be to differentiate economic profit from accounting profit. Once you understand that difference, it makes more sense to discuss firms making a profit. After all, firms that don't make accounting profit tend to exit the market.

In the hope of high returns, venture capitalists provide funds to finance new (start up) companies. However, potential competitors and structures of the market into which the new firm enters are extremely important in realization of profits. Among different market structures, which one do you believe provides the highest possible return for a new company and why?

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