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Words of Joseph A. Schumpeter about Profits

Joseph A. Schumpeter popularized and refined the concept that profits: (i) ultimately derive primarily from innovation. (ii) are necessary compensation to entrepreneurs for bearing uncertainty. (iii) are reduced by bureaucratic inefficiencies in firms with important market power. (iv) are reduced to zero in the long run within competitive industries. (v) require conservative financial investment policies.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

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