profit


profit
profiter, n.profitless, adj.profitlessly, adv.profitlessness, n.
/prof"it/, n.
1. Often, profits.
a. pecuniary gain resulting from the employment of capital in any transaction. Cf. gross profit, net profit.
b. the ratio of such pecuniary gain to the amount of capital invested.
c. returns, proceeds, or revenue, as from property or investments.
2. the monetary surplus left to a producer or employer after deducting wages, rent, cost of raw materials, etc.: The company works on a small margin of profit.
3. advantage; benefit; gain.
v.i.
4. to gain an advantage or benefit: He profited greatly from his schooling.
5. to make a profit.
6. to take advantage: to profit from the weaknesses of others.
7. to be of service or benefit.
8. to make progress.
v.t.
9. to be of advantage or profit to: Nothing profits one so much as a sound education.
[1250-1300; (n.) ME < MF < L profectus progress, profit, equiv. to pro- PRO-1 + -fec-, comb. form of facere to make, DO1 + -tus suffix of v. action; (v.) ME profiten, deriv. of the n.]
Syn. 1. return. 2. net income. 3. good, welfare, advancement, improvement. See advantage. 4, 9. advance, improve.
Ant. 1. loss.

* * *

In business usage, the excess of total revenue over total cost during a specific period of time.

In economics, profit is the excess over the returns to capital, land, and labour. Since these resources are measured by their opportunity costs, economic profit can be negative. There are various sources of profit: an innovator who introduces a new production technique can earn entrepreneurial profits; changes in consumer tastes may bring some firms windfall profits; or a firm may restrict output to prevent prices from falling to the level of costs (monopoly profit).

* * *

      in business usage, the excess of total revenue over total cost during a specific period of time. In economics, profit is the excess over the returns to capital, land, and labour (interest, rent, and wages). To the economist, much of what is classified in business usage as profit consists of the implicit wages of manager-owners, the implicit rent on land owned by the firm, and the implicit interest on the capital invested by the firm's owners. In conditions of competitive equilibrium, “pure” profit would not exist, because the competitive market would cause the rates of return to capital, land, and labour to rise until they exhausted the total value of the product. Should profits emerge in any field of production, the resulting increase in output would cause price declines that would eventually squeeze out profits.

      The real world is never one of complete competitive equilibrium, though, and the theory recognizes that profits arise for several reasons. First, the innovator who introduces a new technique can produce at a cost below the market price and thus earn entrepreneurial profits. Secondly, changes in consumer tastes may cause revenues of some firms to increase, giving rise to what are often called windfall profits. The third type of profit is monopoly profit, which occurs when a firm restricts output so as to prevent prices from falling to the level of costs. The first two types of profit result from relaxing the usual theoretical assumptions of unchanging consumer tastes and states of technology. The third type accompanies the violation of perfect competition itself.

* * *


Universalium. 2010.

Synonyms:

Look at other dictionaries:

  • PROFIT — La difficulté, maintes fois soulignée, d’une définition du profit tient à trois types de raisons: en premier lieu, la non concordance du point de vue du comptable (généralement dominé par le souci fiscal) et de celui de l’économiste (préoccupé… …   Encyclopédie Universelle

  • Profit — (von lat. profectus „Fortgang, Zunahme, Vorteil“ / Aussprache: [pʀoˈfit]) bezeichnet den Gewinn, d.h. den Überschuss, welcher nach Abzug der Kosten der eingesetzten Mittel von einem Unternehmen, bzw. Unternehmer erzielt wird. Inhaltsverzeichnis 1 …   Deutsch Wikipedia

  • profit — Profit. s. m. v. Gain, émolument, advantage, utilité. Grand profit. profit mediocre. profit legitime. profit clair & net. tirer du profit d une affaire. ils ont partagé le profit ensemble. c est un homme qui ne songe qu à son profit, qui est… …   Dictionnaire de l'Académie française

  • profit — prof·it n 1: gain in excess of expenditures: as a: the excess of the selling price of goods over their cost b: net income from a business, investment, or capital appreciation compare earnings, loss …   Law dictionary

  • profit — PROFÍT, profituri, s.n. Ceea ce reprezintă un folos (material sau spiritual) pentru cineva sau ceva; câştig, beneficiu, avantaj. (Ec.) Venitul adus de capitalul utilizat într o întreprindere, reprezentând diferenţa dintre încasările efective şi… …   Dicționar Român

  • Profit — generally is the making of gain in business activity for the benefit of the owners of the business. The word comes from Latin meaning to make progress, is defined in two different ways, one for economics and one for accounting.Profit may refer to …   Wikipedia

  • profit — pròfīt m <G profíta> DEFINICIJA 1. ekon. količina novca koja se dobije kada se od ukupnog prihoda poduzeća odbiju troškovi svih inputa ili proizvodnih faktora; višak, dobit 2. pren. dobit iz neke situacije (novčana, moralna i sl.) SINTAGMA… …   Hrvatski jezični portal

  • Profit — Pro fit, n. [F., fr. L. profectus advance, progress, profit, fr. profectum. See {Proficient}.] 1. Acquisition beyond expenditure; excess of value received for producing, keeping, or selling, over cost; hence, pecuniary gain in any transaction or… …   The Collaborative International Dictionary of English

  • Profit — Sm std. (15. Jh.) Entlehnung. Entlehnt aus mndl. profijt, dieses aus frz. profit, dieses aus l. prōfectus Zunahme, Wachstum, Vorteil , dem PPP. von l. prōficere (prōfectum) gewinnen, bewirken, vorwärts kommen , zu l. facere machen und l. prō .… …   Etymologisches Wörterbuch der deutschen sprache

  • Profit — Prof it, v. t. [imp. & p. p. {Profited}; p. pr. & vb. n. {Profiting}.] [F. profiter. See {Profit}, n.] To be of service to; to be good to; to help on; to benefit; to advantage; to avail; to aid; as, truth profits all men. [1913 Webster] The word… …   The Collaborative International Dictionary of English

  • Profit — Prof it, v. i. 1. To gain advantage; to make improvement; to improve; to gain; to advance. [1913 Webster] I profit not by thy talk. Shak. [1913 Webster] 2. To be of use or advantage; to do or bring good. [1913 Webster] Riches profit not in the… …   The Collaborative International Dictionary of English


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.