> Profit is not compensation for risk.
Yes it is. The primary reason anyone takes on risk is because there is profit in it.
Yes it is. The primary reason anyone takes on risk is because there is profit in it.
Risk is a limiting factor on chasing profit. The risk isn't the other side of a coin with profit. There are lots of different limiting factors on chasing profit; more supply may simply be unavailable, there may be barriers to entry, natural monopolies, regulation, etc. Risk (capital and human time) is one among many.