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EXCESS PROFIT [1 record]

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Alphabetical list of terms

Record 1 2001-09-06

English

Subject field(s)
  • Corporate Economics
CONT

Economists include a normal return to management services, as determined competitively in all industries; and a normal return to capital, as determined competitively everywhere by industries of equal riskiness. In the above sense we may say that "normal profits" are included in costs and that "excess profits" are competed away by entry of new firms and "abnormal losses" are eliminated by long-run exit of firms.

French

Domaine(s)
  • Économie de l'entreprise

Spanish

Campo(s) temático(s)
  • Economía empresarial
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