Tag Archives | Profit

When does the Profit of a Firm become Maximum? | Economics

In this article we will discuss when does the profit of a firm become maximum. Also learn about why is the equality of marginal revenue and marginal cost essential for profit maximisation in all types of markets. The basic objective of a firm under all types of market situation is the profit maximisation. Accordingly, a firm, whether competitive or mo­nopolistic, [...]

By |2017-01-13T05:58:21+05:30January 13, 2017|Profit Maximisation|Comments Off on When does the Profit of a Firm become Maximum? | Economics

What is Profit? | Firm | Economics

Get the answer of: What is Profit? The businessperson produces goods and services for his customers with the hope of earning a profit by efficient operation. A profit in the business sense is the difference between the selling prices of a good (or service) and its total cost. Different views: Profit in an economic sense differs from profit in a [...]

By |2017-01-13T05:55:20+05:30January 13, 2017|Profit|Comments Off on What is Profit? | Firm | Economics

Taussig’s Theory of Profit | Firm | Economics

In this article we will discuss about Taussig’s theory of profit. Also learn about its criticisms. According to rent theory super­normal profit is a surplus above the opportunity (transfer) cost of entrepreneurship. Therefore, it is comparable to economic rent which is also a surplus. According to the wage theory of profit, advanced by Taussig, profit is a type of wage. [...]

By |2017-01-13T05:55:20+05:30January 13, 2017|Theory of Profit|Comments Off on Taussig’s Theory of Profit | Firm | Economics
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