Bert hamminga Adam Smith's Invisible Hand    000213     Control questions

1. Adam Smith proves that in a free competitive economy, rates of profit in different industries tend to equalise. How does he prove it?
2. He proves his theorem from assumptions. Which ones? Are they plausible?
3. In reality, rates of profit in different industries do not equalise. Does that mean that Adam Smith's proof is wrong? If the proof is correct, does it mean something else is wrong? If so, what?