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  • 03-03-2019
  • History
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what role does the profit motive play in a market economy?

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  • 03-03-2019

The Role of Profit in an Economy. Profit is the surplus revenue after a firm has paid all its costs. Profit can be seen as the monetary reward to shareholders and owners of a business. In a capitalist economy, profit plays an important role in creating incentives for business and entrepreneurs.

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