Which theory of profit views profit as a firm's reward for keeping costs below or revenues above the levels experienced by other firms in the industry?

Question

Quizplus · Accepted Answer

The Managerial Efficiency Theory of profit posits that a firm's profit is the reward for the superior efficiency of its management in reducing costs and/or increasing revenues compared to other firms in the industry. This theory emphasizes the role of managerial skills and efficiency in generating profits.

Which Theory of Profit Views Profit as a Firm's Reward