There are practical limits to innovation and investment. If profits are already close to zero due to intense competition and low barriers to entry, then any further decline in the rate of profit could make it even less attractive for companies to invest in innovation or new technologies. This could lead to a lack of innovation, a decline in productivity, and even the closure of some businesses.
There are practical limits to innovation and investment. If profits are already close to zero due to intense competition and low barriers to entry, then any further decline in the rate of profit could make it even less attractive for companies to invest in innovation or new technologies. This could lead to a lack of innovation, a decline in productivity, and even the closure of some businesses.