Profit, like the reward of any other factor, is determined by the forces of demand and supply. This theory defines the entrepreneur as a business enterprise itself and profit as his net income. Profit as the reward of an entrepre- neur is governed by the demand for and supply of entrepreneurs. Demand for Entrepreneurs The … Read more
The difference between accounted profit and finan- cial profit makes measurement of profit complicated. The question arises as to what to include in opportunity cost and what not to. Measurement of profits is not easy even from accounting point of view. In the financial analysis of company accounts because of some accounting traditions many serious … Read more
The nature of profit has been a very complicated and difficult problem for economists to solve. In the last stages of the 19th century Prof. Taussig had called it a form of mixed and vexed income. It is mixed because it is formed as a mixture of many resources and vexed because economists cannot decide … Read more