Abstract
Risk arises in particular types of production (e.g. oil-drilling) and where production takes place in advance of an uncertain demand. ‘Entrepreneurship’ accepts this risk, and it has to be paid at least its opportunity cost — ‘normal profit’. The size of normal profit will vary according to the degree of risk involved and the willingness of people to accept that risk.
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© 1994 J. Harvey and Janet Johnson
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Harvey, J., Johnson, M.K. (1994). Entrepreneurship and Profit. In: Modern Economics. Palgrave, London. https://doi.org/10.1007/978-1-349-23360-1_23
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DOI: https://doi.org/10.1007/978-1-349-23360-1_23
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-60835-7
Online ISBN: 978-1-349-23360-1
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