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Abnormal Profit
In economics, abnormal profit, also called excess profit, supernormal profit or pure profit, is "profit of a firm over and above what provides its owners with a normal (market equilibrium) return to capital." Normal profit (return) in turn is defined as opportunity cost of the owner's resources. A related broader term is economic rent, which applies to the owner of a resource, such as land, rather than to the firm as such. According to the theoretical model of perfect competition, abnormal profits are unsustainable because they stimulate new supply, which forces down prices and eliminates the abnormal profit. Abnormal profit persists in the long run in imperfectly competitive markets where firms successfully block the entry of new firms. Abnormal profit is usually generated by an oligopoly or a monopoly; however, firms often try to hide this fact, both from the market and government, in order to reduce the chance of competition, or government intervention in the form of an antitru ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics
Economics () is the social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interactions of Agent (economics), economic agents and how economy, economies work. Microeconomics analyzes what's viewed as basic elements in the economy, including individual agents and market (economics), markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it: employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies that have impact on glossary of economics, these elements. Other broad distinctions within economics include those between positive economics, desc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Antitrust Law
Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust law (or just antitrust), anti-monopoly law, and trade practices law. The history of competition law reaches back to the Roman Empire. The business practices of market traders, guilds and governments have always been subject to scrutiny, and sometimes severe sanctions. Since the 20th century, competition law has become global. The two largest and most influential systems of competition regulation are United States antitrust law and European Union competition law. National and regional competition authorities across the world have formed international support and enforcement networks. Modern competition law has historically evolved on a national level to promote and maintain fair competition in markets principally within the territorial bou ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Excess Profits Tax
In the United States, an excess profits tax is a tax on any profit above a certain amount. A predominantly wartime fiscal instrument, the tax was designed primarily to capture wartime profits that exceeded normal peacetime profits to prevent perverse incentives for manufacturers to engage in war profiteering and warmongering. History United Kingdom In Great Britain in World War I, the Treasury rejected proposals for a stiff capital levy, which the Labour Party wanted to use to weaken the capitalists. Instead, there was an excess profits tax, of 50 percent of profits above the normal prewar level; the rate was raised to 80 percent in 1917.Mark Billings and Lynne Oats, "Innovation and pragmatism in tax design: Excess Profits Duty in the UK during the First World War." ''Accounting History Review'' 24#2-3 (2014): 83-101. Excise taxes were added on luxury imports such as automobiles, clocks and watches. There was no sales tax or value added tax at this time in Britain. United States ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Windfall Profits
A windfall gain is an unusually high or abundant income, that is sudden and/or unexpected. Types Examples of windfall gains include, but are not limited to: *Gains from demutualization - this example can lead to especially large windfall gains. A study in 1999 into the potential demutualization of the John Lewis Partnership predicted that partners would receive upwards of £100,000 in windfall gains if the company were to be floated on the stock market. *Unexpected inheritance or other large gift from another *Sweepstakes winnings *Winning a lottery or success in another form of gambling *Returns on investments *Proceeds or profit from a large sale *Game show, or other contest winnings *Employment payroll bonus *Natural resources * Foreign aid *Proceeds from an insurance claim *Settlement from a lawsuit *Discoveries from treasure hunting Uses What people do with windfall gains is subject to much debate. While they differ from one account to the next, most economists hypothesize th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
War Profiteering
A war profiteer is any person or organization that derives profit (economics), profit from warfare or by selling weapons and other goods to parties at war. The term typically carries strong negative connotations. General profiteering (business), profiteering, making a profit criticized as excessive or unreasonable, also occurs in peacetime. An example of war profiteers were the shoddy millionaires, "shoddy" millionaires who allegedly sold recycled wool and cardboard shoes to soldiers during the American Civil War. Some have argued that major modern defense conglomerates like Lockheed Martin, Boeing, BAE Systems, General Dynamics, and Raytheon fit the description in the post-9/11 era. This argument is based in the military-industrial complex, political influence of the arms industry, defense industry, for example in 2010 the defense industry spent $144 million on lobbying and donated over $22.6 million to congressional candidates, as well as large profits for defense company shareh ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Rent
In economics, economic rent is any payment (in the context of a market transaction) to the owner of a factor of production in excess of the cost needed to bring that factor into production. In classical economics, economic rent is any payment made (including imputed value) or benefit received for non-produced inputs such as location (land) and for assets formed by creating official privilege over natural opportunities (e.g., patents). In the moral economy of neoclassical economics, economic rent includes income gained by labor or state beneficiaries of other "contrived" (assuming the market is natural, and does not come about by state and social contrivance) exclusivity, such as labor guilds and unofficial corruption. Overview In the moral economy of the economics tradition broadly, economic rent is opposed to producer surplus, or normal profit, both of which are theorized to involve productive human action. Economic rent is also independent of opportunity cost, unlike ec ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Michael Porter
Michael Eugene Porter (born May 23, 1947) is an American academic known for his theories on economics, business strategy, and social causes. He is the Bishop William Lawrence University Professor at Harvard Business School, and he was one of the founders of the consulting firm The Monitor Group (now part of Deloitte) and FSG, a social impact consultancy. He is credited for creating Porter's five forces analysis, which is instrumental in business strategy development at present. He is generally regarded and hailed as the father of the modern strategy field. He is also regarded as one of the world's most influential thinkers on management and competitiveness as well as one of the most influential business strategists the world has ever seen. He is the most sought after research scholar and his work has been highly recognised by governments, non governmental organisations and universities. Early life Michael Porter's father was a civil engineer and Georgia Tech graduate who had go ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Intramarginal Rent
This glossary of botanical terms is a list of definitions of terms and concepts relevant to botany and plants in general. Terms of plant morphology are included here as well as at the more specific Glossary of plant morphology and Glossary of leaf morphology. For other related terms, see Glossary of phytopathology, Glossary of lichen terms, and List of Latin and Greek words commonly used in systematic names. A B ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
