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1、Entrepreneurshipisdirectlyresponsibleforproduction.Thebusinessperson(entrepreneur)takesacuefromconsumersindecidingwhattheywant-or,inthecaseofanewproduct,__1__.Profitmeansdifferentthingstodifferentpeople.Accordingtosomepublicopinionpolls,manypeoplearenotsurewhatitis,buttheyaresure__
2、2__.Workersmaylookatprofitasanunfairlylargepaymenttotheentrepreneurthatdeprivesthemofahigherwage.Thebusinesspersonthinksofprofit__3__.DuringnegotiationsbeforethesettlementofthesecondbaseballstrikeinAugust,1985,thePlayers'Associationclaimedtheownershadmadeprofitsof$91million,anaccou
3、ntingfirmsaidownerprofitswere$43million,andtheownersinsistedtheyhadlost$9million.Thetruthwasthatallthreewerecorrect.Thedisparityinthefigureswasduetothefactthateachgroupwasdefiningprofitdifferently.Letusnowseeifwecandevelopamoreexactdefinitionofwhatprofitis.Grossprofitisthedifferenc
4、ebetweenwhatabusinessfirmsellsitsproductforandwhatitcoststoproducethatproduct.Themerchantbuys$200,000worthofmerchandiseduringtheyearandsellsitfor$270,000.Hisgrossprofitis$70,000.Thepercentagedifferencebetweenhiscostandthesellingpriceis35percent,andhecallsthismarkup.Netprofitis__4__
5、--rent,wages,andinterest-andsettingasidemoneytoallowforthelossduetodepreciation(wearingout)ofcapital.Ourmerchanthastosubtractfromhisgrossprofithispaymentsforrent($6,000),wages($20,000),interestonmoneyborrowed($1,000),repairsandupkeep($1,000),taxes($1,000),electricityandotherexpense
6、s$1,000.Expensesforoperatingthebusinesscometo$30,000.Grossprofitis$70,000,andnetprofitis$40,000.Economistshaveanarrowerdefinitionofwhatconstitutesprofit.Theyareconcernedwithpaymentforalltheresourcesthathavegoneintoproduction,__5__,likethoselistedabove,orfrominsidethebusiness.Exerci
7、se:AwhatprofitreallymeansBitistoolargeandrepresentstoomuchoftheconsumer'sdollarCwhethertheycomefromoutsidethebusinessDasthedifferencebetweentotalrevenueandtotalcostEwhatthebusinesspersonhasleftafterpayingexpensesFwhattheymightwantWhenamagazineforhigh-schoolstudentsaskeditsreaderswh
8、atlifewouldbelikeintwentyy
