Reference no: EM133078547

The entrepreneurial function, the "entrepreneurship", according to Kirzner consists of the discovery of unforeseen opportunities to transform matter and energy in ways that add subjective value. Does entrepreneurship always bring us closer to balance? He explains the conditions that would make the venture always balancing and the conditions that would make the balance non-balancing. Business profits can be conceptually divided into two types, those that are the product of pure business function and those that are due to the fact that production takes time (interest). Does competition tend to reduce profit to zero? Would competition tend to equalize the two profits between different companies in the same industry? Are earnings subjective or objective and how would this affect the last question?