Profits Econ 213
Profits
Katherine Carpenter
Liberty University
Econ 213
Gwartney states that profits are; “An excess of sales revenue relative to the opportunity cost of production. The cost component includes the opportunity cost of all resources, including those owned by the firm. Therefore, profit accrues only when the value of the good produced is greater than the value of the resources used for its production.” An example of a profit would be bakery offers a cheesecake for $20 and the total cost to make the cheesecake is $15 this give the bakery a $5 profit per cheesecake.
Investopedia defines profit as being the revenue that a business gains after the expenses, costs and taxes required are paid. A business can be something as small as a lemonade stand or as big as a multinational company that is publically traded, (Investopedia, N.D.). The concise encyclopedia says that in a capitalistic society profits take center stage, (Thurow, 2008)
Hutchison Whampoa Ltd based in Hong Kong increased their profits by 19% because of utility investments in Europe. Before interest and taxes Europe accounted for 34% of the company’s earnings. The company has been buying up infrastructure and telecom assets in Europe because the prices are good and the Euro is weaker.
There are several verses in the Bible that speak of profits here are a few of them. 2 Corinthians 9:6 - But this I say, He which soweth sparingly shall reap also sparingly; and he which soweth bountifully shall reap also bountifully. 1 Timothy 6:10 - For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows. Hebrews 13:17- Obey your leaders and submit to them, for they watch on behalf of your souls, as those who will give account, that they may do this with joy, and not with groaning, for that would be unprofitable for you.
References
Bible, KJV
Chen, T. & Yung, C. (2013, March 26). Hutchison 's underlying profit
Katherine Carpenter
Liberty University
Econ 213
Gwartney states that profits are; “An excess of sales revenue relative to the opportunity cost of production. The cost component includes the opportunity cost of all resources, including those owned by the firm. Therefore, profit accrues only when the value of the good produced is greater than the value of the resources used for its production.” An example of a profit would be bakery offers a cheesecake for $20 and the total cost to make the cheesecake is $15 this give the bakery a $5 profit per cheesecake.
Investopedia defines profit as being the revenue that a business gains after the expenses, costs and taxes required are paid. A business can be something as small as a lemonade stand or as big as a multinational company that is publically traded, (Investopedia, N.D.). The concise encyclopedia says that in a capitalistic society profits take center stage, (Thurow, 2008)
Hutchison Whampoa Ltd based in Hong Kong increased their profits by 19% because of utility investments in Europe. Before interest and taxes Europe accounted for 34% of the company’s earnings. The company has been buying up infrastructure and telecom assets in Europe because the prices are good and the Euro is weaker.
There are several verses in the Bible that speak of profits here are a few of them. 2 Corinthians 9:6 - But this I say, He which soweth sparingly shall reap also sparingly; and he which soweth bountifully shall reap also bountifully. 1 Timothy 6:10 - For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows. Hebrews 13:17- Obey your leaders and submit to them, for they watch on behalf of your souls, as those who will give account, that they may do this with joy, and not with groaning, for that would be unprofitable for you.
References
Bible, KJV
Chen, T. & Yung, C. (2013, March 26). Hutchison 's underlying profit
References: Bible, KJV Chen, T. & Yung, C. (2013, March 26). Hutchison 's underlying profit gets european boost. The Wall Street Journal, Retrieved from http://online.wsj.com/article/SB10001424127887323605404578384322582180796.html Gwartney, J. D., Stroup, R. L., Sobel, R. S., & Macpherson, D. A. (2013). Economics: Private and public choice (14th ed.). Independence, KY: Cengage Learning Investopedia. (N.D.). Profit. Retrieved April 3, 2013, from Investopedia: http://www.investopedia.com/terms/p/profit.asp Lester C. Thurow. "Profits." The Concise Encyclopedia of Economics. 2008. Library of Economics and Liberty. Retrieved April 4, 2013 from the World Wide Web: http://www.econlib.org/library/Enc/Profits.html