Profit

Profit

Bachelor of Business Studies (BBS) — First Year

Subject: Microeconomics for Business (MGT 207)

Unit 8: Theory of Factor Pricing

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of profit.
• Explain the economic reasoning and use appropriate diagrams or relationships in business analysis.

Curriculum Scope

• Economic and business profit
• Dynamic theory
• Innovation theory

Detailed Microsyllabus

1. Profit concepts

   1. Business profit and economic profit.
   2. Explicit and implicit costs in distinguishing the measures.
   3. Normal return and residual earnings.

2. Theories of profit

   1. Dynamic changes and the emergence of profit.
   2. Innovation and entrepreneurial returns.
   3. Compare explanatory scope and limitations of the theories.

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Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 17-19.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here. The programme subject list identifies this course as MGT 207; the detailed subject heading in the source prints MGT 203.