Causal-realist analysis allows imaginary constructs like the ERE- Evenly Rotating Economy- in order to isolate certain factors like interest. There would be no profit or loss in the ERE, because those can only exist under conditions of uncertainty.
Klein explains profit as a category, not a line item. The entrepreneur’s function is to experiment with combinations of factors of production to find those that produce the greatest economic value.
THE AUDIO/ VIDEO FORMAT OF THIS LECTURE AT 33 MINUTES SIMPLY SCOOTS TO THE END AND STOPS.
But, the audio download file is not damaged or attenuated.
The sixth in a series of ten lectures, from Fundamentals of Economic Analysis: A Causal-Realist Approach.