Category: management economics

Shackle’s Profit Theory

Shackle’s Profit Theory Professor Shackle has extended Prof. Knight’s theory by introducing expectations under conditions of uncertainty. According to Shackle, expectations are of two types: general and specific. General expectations relate to general variables...

Profit Theory of Bearing Uncertainty

Profit Theory of Bearing Uncertainty Professor Frank H. Knight considers profit as the reward for bearing those risks and uncertainties which cannot be insured. He distinguishes between insurable and uninsurable risks. Some risks can...

Profit Theory – Risk

Profit Theory – Risk The risk theory of profit is associated with the name of F.B. Holley, who considers risk taking to be the main function of the entrepreneur. Profit is the residual income...

Schumpeter’s Innovation Profit Theory

Schumpeter’s Innovation Profit Theory Professor Schumpeter considers that profits arise from dynamic changes resulting from innovation. To begin with, he takes a capitalist closed economy in static equilibrium. A ‘circular flow’ that repeats itself...


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