The Theory That Profits Are a Reward for Taking Risks

question 94

Short Answer

The theory that profits are a reward for taking risks was formulated by _________.

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Definitions:

Industry Rivals

Companies within the same industry that compete with one another for market share and profitability.

Erode Producer Profits

The process by which factors such as increased competition or higher costs reduce the profits that producers can make.

Producer Surplus

The additional revenue producers earn by selling a product at a market price above their minimum acceptable price.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy.