Positive profit premiums in excess of normal profits that must be paid to attract people to risky activities reflect payment to compensate for:

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Positive profit premiums in excess of normal profits that must be paid to attract people to risky activities are essentially compensations for risk aversion. This is because individuals generally prefer to avoid risk, and thus require additional compensation to participate in activities that are riskier than what they would normally engage in.

Positive Profit Premiums in Excess of Normal Profits That Must