The Role of Profit in Advanced Market Economies



During our careers as business economists before entering university research programs, we observed that profitability criteria are key variables not only in investment decisions but also in production decisions after investments are made and goods and services come on stream. Profitability not only determines the level of investments but also the level of output. In our academic careers, we have found that, while there is an extensive theoretical and empirical literature on the relationships between profitability criteria and capital formation activities


Capital Stock Profit Margin Business Sector Total Profit Business Firm 
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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.Texas A & M University Mays Business SchoolCollege StationUSA

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