Walker''s theory of profit, Managerial Economics

Profit as rent of ability: one of the most widely known theories of profit was propounded by F.A. Walker. According to him profit is the rent of is the difference between the earnings of at least and the most fertile land. Profit is the difference between the formulating his profit theory, Walker and as the most efficient enterprises in formulating his profit theory each firm summed a state of perfect competition in which all firms are presumed to possess equal managerial ability. Each firm would receive only the wages of management which, in walker's view, forms no part of pure profit. He regarded wages of management as ordinary wages. Thus under perfectly competitive conditions, there would be no pure profit and all firms would earn only managerial wages, which is popularly known as "normal profit".

Posted Date: 8/4/2012 7:24:33 AM | Location : United States







Related Discussions:- Walker''s theory of profit, Assignment Help, Ask Question on Walker''s theory of profit, Get Answer, Expert's Help, Walker''s theory of profit Discussions

Write discussion on Walker''s theory of profit
Your posts are moderated
Related Questions
in the context of an environment of business,state briefly the implication of (1) Ee>1.....(2)Ee=1......(3)Ee=0.......(4)Ee

Consider an economy with two individuals. Individual 1 has (inverse) demand curve for a public good given by P1=60-2Q1, While individual 2 has (inverse) demand curve for the public

Joe is evaluating the marketing strategy at his restaurant and inn. Suppose that in response to a $2.00 off sales promotion for spaghetti dinners, Joe finds that nightly dinner sal

PRICE ELASTICITY OF SUPPLY AND THE SLOPE OF THE SLOPE CURVE For a straight line supply curve, the gradient is constant along the whole length of the curve, but elasticity

ISOQUANT ANALYSIS In the long run it is possible for a firm to produce the same output using different combinations of two factors of production.  For instance it the two fact


Discount Rate (Bank Rate) This is the rate on central bank advances and is also called official discount rate or "minimum lending rate".  When commercial banks find themselves

Discuss and analyze following statement: When Burton Cummings graduated with honors from the Canadian Trucking Academy, his father gave him a $350,000 tractor-trailer rig. Rec


Advantages of Perfect Market It achieves, subject to certain conditions, an allocation of resources which is: socially optimal" or "economically efficient" or "pareto effi