Risk, Uncertainty and Profit

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Houghton Mifflin, 1921 - Profit - 381 pages
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Page 323 - Whatever our philosophy of human motives, we must face the fact that men do "raise more corn to feed more hogs to buy more land to raise more corn to feed more hogs to buy more land...
Page 272 - The producer takes the responsibility of forecasting the consumers' wants. In the second place, the work of forecasting and at the same time a large part of the technological direction and control of production are still further concentrated upon a very narrow class of the producers, and we meet with a new economic functionary, the entrepreneur...
Page 274 - with human nature as we know it it would be impracticable or very unusual for one man to guarantee to another a definite result of the latter's actions without being given power to direct his work.
Page 237 - The practical difference between the two categories, risk and uncertainty, is that in the former the distribution of the outcome in a group of instances is known (either through calculation a priori or from statistics of past experience...
Page 237 - ... it is impossible to form a group of instances, because the situation dealt with is in a high degree unique (Knight, 1921, p.
Page v - Schaffner, and Marx, of Chicago, who have shown a special interest in trying to draw the attention of American youth to the study of economic and commercial subjects...
Page 77 - ... perfect mobility" in all economic adjustments, no cost involved in movements or changes. To realize this ideal all the elements entering into economic calculations — effort, commodities, etc. — must be continuously variable, divisible without limit.
Page 272 - With uncertainty present doing things, the actual execution of activity, becomes in a real sense a secondary part of life; the primary problem or function is deciding what to do and how to do it.38 This fact of uncertainty brings about the two most important characteristics of social organisation.
Page 200 - For profit arises from the fact that entrepreneurs contract for productive services in advance at fixed rates, and realize upon their use by the sale of the product in the market after it is made. Thus the competition for productive services is based upon anticipations. The prices of the productive services being the costs of production, changes in conditions give rise to profit by upsetting anticipations and producing a divergence between costs and selling price, which would otherwise be equalized...
Page 323 - The increase in wealth is to a large extent an end in itself as well as a means to the increase of income, and this also again to a rapidly increasing degree as the standards of life are advanced. Men work "to get rich...