Conclusion Regarding Theories of Profit
We have discussed above the various theories of profits. The question arises: which theory shall we accept? How do profits arise? Here we are thinking of not gross profit but net profit. The fact is that in the real world there are several causes which give rise to profit, but the principle cause is uncertainty. This uncertainty is due to the dynamic nature of the world. In this real world of ours, some or the other change is always taking place. But such changes only are causes of profits as cannot be foreseen as we have read in K6. Enterprise and the Productive Process. 1907 Night’s theory.
However, in a static world, profits can arise in one way, viz., owing to monopoly. The monopoly profits arise in the dynamic world also. Decides monopoly profits can arise also from any other position of advantage. ran sa} there are twu sources of pruritus: (0) uncertainty and (b) position of special