#Profit as a business Objective, Managerial Economics

Assignment Help:
Write on one theory of profit.
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".

Related Discussions:- #Profit as a business Objective

Mba, what is third degree discrimination

what is third degree discrimination

When is production profitable according to price-taking firm, When is produ...

When is production profitable according to price-taking firm at profit, break-even or loss? Production profitable at profit, break-even or loss: a. When TR > TC, in that cas

Causes for diseconomies of scale, Q. Causes for diseconomies of scale? ...

Q. Causes for diseconomies of scale? The most significant cause for diseconomies of scale is the diminishing returns to management. As the output grows beyond certain level the

Determinants of the money supply, Determinants of the money supply Two...

Determinants of the money supply Two extreme situations are imaginable.  In the first situation, the money supply can be determined at exactly the amount decided on by the Cen

Equilibria than continuous pricing, Two firms are engaged in Bertrand compe...

Two firms are engaged in Bertrand competition. Both firms have a stable marginal cost of €7. Presently, every firm is allocated half the market. There are 10,000 people in the popu

State the method of price elasticity of demand, Price elasticity of demand ...

Price elasticity of demand The price elasticity of demand is defined as the degree of sensitiveness or responsiveness of demand for a commodity to the changes in its price. Mo

Relationship TR, Explain in brief the relationship between TR,AR and MR und...

Explain in brief the relationship between TR,AR and MR under perfect market condition.

Way to deal with price rises, a) A country should always protect its dome...

a) A country should always protect its domestic industries. Discuss. b) To what extent can a country actually rely on the principle of Comparative Advantage before engaging

Functions of central bank , FUNCTIONS OF CENTRAL BANK Economists and f...

FUNCTIONS OF CENTRAL BANK Economists and financial experts lack in unanimity about the functions of a central bank. According to Kisch and Elkin, the essential function of a c

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd