The Guide To Find Business Ideas

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The economists of neoclassics resisting to the Marxist theory of profit gave the definitions. So, for example in J. B. Clark's theory, etc. profit to be brought together L. Valras to a limit product of the capital and does not mix up with remunerations of other factors.

Having the invariable equipment in the short-term period the firm tries to maximize the profits or to minimize the losses, adapting the output by means of changes in the size of variable resources, such as work, raw materials, etc.

Many industrial enterprises and associations have the main suppliers. Their profit has a direct bearing on prime cost. It consists of the expenses connected with use in the course of production of natural, labor and material resources, and also other costs of release and product sales. The structure of expenses, because of limitation of resources, has property to increase that of course conducts to reduction of the got profit.

The normal profit is one of elements of internal costs. It can be defined as remuneration for the executed functions. Let's consider it on the individual owner of the enterprise primere:sushchestvut, on he applies exclusively own work. Thus it has no external costs (does not pay a salary, a rent), but incurs internal costs, because of inefficient use of resources. Handing over this enterprise to someone to another, it could have the constant income. Besides, he could offer the administrative services to other similar enterprise and too have profit. I.e. that minimum payment which is necessary to keep it enterprise abilities and money within this enterprise and is called as normal profit.

On this schedule the curve of demand is a tangent to a curve of average costs, at the output maximizing profit In this case the firm simply covers the costs, i.e. it is profitable. It is explained in the long-term period by that having got profit in the short-term period of firm will want to expand the production, therefore a demand curve (see the schedule in short-term the period will fall, will move to the left and will become more elastic, it is explained by reduction of cumulative demand for each firm owing to what profits disappear.

The English neoclassic A. Marshall, on the basis of the theory of limit productivity considered that "the profit is an income of the enterprise, or the complex income including percent on own capital of the businessman, a payment to it for management and remuneration for risk".2

"Two principles are known by which it is possible to determine level of production at which the competitive firm will get the maximum profits or the minimum losses. The first includes comparison of a gross revenue and gross costs, the second - comparison of the limit income and limit costs." 6

On the basis of doctrines about A. Smith's profit and D. Ricardo C. Marx constructed the doctrine about profit and a surplus value. According to Marx, the profit is the turned modified surplus value which source is operation of wage labor, i.e. unpaid work of workers." Turned" means that visibility and essence do not coincide. Visibility of that a surplus value is result of all variable capital, and actually it is payment only parts of the working day, necessary working hours.

the expenses charged to profit in structure of product cost. For uniform inclusion of the forthcoming expenses in costs of production the enterprise can create reserves: on the forthcoming payment of holidays to workers; on payment of annual remuneration for long service; on repair of fixed assets, etc.

The main objective of activity of any enterprise is made by maximizing profit. The main limiters of receiving profit are costs of production." Economists consider as costs of production all payments - external or internal, including in the last and the normal profit necessary to attract and hold resources within this direction of activity".3pod by economic costs of profit payments which the firm has to make to owners of resources are understood to attract these resources to a certain production.

Limit costs - are connected with production of an additional unit of production. In other words they represent increase in cumulative costs to which the firm for the sake of production of one more unit produktsii.5 has to go