markitect-main/examples/infospace-with-history/output/entities/ordinary-profits-of-stock.md

Ordinary Profits of Stock

Definition

The normal rate of return that capital can expect to earn in a particular trade or industry under competitive market conditions, serving as a benchmark for evaluating investment opportunities.

Source Chapter

Book IV, Chapter 5

Context

Smith uses ordinary profits as a standard for determining whether bounties are necessary, arguing that trades earning ordinary profits don't require subsidies, while those earning below this rate may indicate fundamental unprofitability.

Economic Domain

Distribution

---