There is no such thing as "excessive profits". On the free market, the greater the profits a company earns, the more efficient it is at serving its customers.
Login to reply
Replies (2)
Although, that is also not right because these entrepreneurs play a critical role in the market process. Their losses prompt the reallocation of resources, either by the same entrepreneur who learns from the failure or by others who step in to better satisfy consumer demands.
Thus, even unsuccessful entrepreneurial ventures contribute to the market's discovery process, helping to reveal what consumers do not value.