We may sum up this section of the argument by saying
that the operation of a market costs something and by
forming an organisation and allowing some authority (an
“ entrepreneur ”) to direct the resources, certain marketing
costs are saved. The entrepreneur has to carry out his
function at less cost, taking into account the fact that he
rnay get factors of production at a lower price than the
market transactions which he supersedes, because it is
always possible to revert to the open market if he fails
to do this.