Caleb

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Efficiency mattered less than being able to control the firm’s market engagements and exposures so that its profits were secured against the competitive activities of others (and government regulators). The technical term here is “economic rent,” meaning above-normal profit, a return greater than that earned with a “risk-free” investment in, for instance, “gilts” or Treasury Bonds.
Business Strategy: Managing Uncertainty, Opportunity, and Enterprise
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