Profits are different from the other rewards to factors of production because?
منافع پیداوار کے دیگر عوامل کی آمدنی سے کیوں مختلف ہیں؟
- They are paid first before the other factors of production
- There is contractual obligations
- They fluctuate
- None of these
Explanation
- In economics, profits are the reward for entrepreneurship.
- Unlike wages, rent, or interest, profit is not fixed or guaranteed.
- It depends on business performance, risk, and market conditions.
- Profits can be high, low, or even negative (loss).
- Therefore, profits are different because they fluctuate.
Last verified on 23-04-2026
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