Entrepreneurs are alert to unrecognized opportunities for mutual gain. By seizing these opportunities, they earn profits, and the mutual learning from the discovery of gains from exchange moves the market to a more efficient allocation of resources. In addition, the lure of profit continually prods entrepreneurs to seek innovations that increase productive capacity. For the entrepreneur who recognizes the opportunity, today’s imperfections represent tomorrow’s profits.
-Matt Mitchell and Pete Boettke (Applied Mainline Economics: Bridging the Gap between Theory and Public Policy)
(H/T: Cafe Hayek)
