Much of what is ordinarily called profit is really nothing but interest, rents, and wages under a different name.

Question

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Economists often distinguish between profits and other factor payments, such as interest (paid to capital providers), rents (paid to landowners), and wages (paid to laborers). However, some argue that what is commonly thought of as profit may actually be a return to one or more of these factors of production, just labeled differently.

Much of What Is Ordinarily Called Profit Is Really Nothing