Profits differ from the other factor payments in that they

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Profits are unique among factor payments because they are a residual payment, meaning they are what remains after all costs have been paid, and they can indeed be negative if costs exceed revenues. Transfer payments, on the other hand, are not a characteristic of profits; they are typically associated with government payments that do not involve a direct exchange for goods or services.

Profits Differ from the Other Factor Payments in That They