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Returns
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Profit

In Classical Economics profit is the return to the [[ proprietor(s)]] of [[ capital]] stocks (machinery, tools, structures). If I lease a backhoe from a tool rental company the amount I pay to the backhoe owner it is interest" (i.e. the return to loaned stock money).

Profit is the difference between the wages that would have been required excavating by hand, and the smaller amount of wages required using the machine. And from this profit interest" is paid.



Last Updated: 29.06.2008

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article Returns.

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