Profit - Pedigogy

Master Principles of Economics – Notes, Case Studies & Practical Insights – with Rahul

Profit

Profit is the reward to an entrepreneur for the functions he renders in productive activity. Out of the income earned by the farm, land owner is paid rent, labourer is paid wage and capitalist is paid interest. Whatever is left over goes to the entrepreneur as profit. Hence, profit is also called a residual income.