Saturday, July 10, 2010
Profit and loss
Expenditure (paid price) is chosen sacrifice. The agent can only choose sacrifice if he expects the value of expenditure (cost) to be worse than the value of the income (revenue). Ex post, cost can be better than revenue, but ex ante this can not be planned. Loss is exclusively an ex-post phenomenon. Ex ante, the agent only acts on grounds of profit.
Labels:
entrepreneur,
information,
praxeology,
semantics
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment