Question: Why is the distinction between insurable and uninsurable risks significant for the theory of profit? Carefully evaluate: All economic profit can be traced to either

Why is the distinction between insurable and uninsurable risks significant for the theory of profit? Carefully evaluate: “All economic profit can be traced to either uncertainty or the desire to avoid it.” What are the major functions of economic profit?

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An insurable risk does not fatally affect the profit and loss of a firm The firm insures against fire and theft and so on and then goes about its busi... View full answer

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