It also continues to make
above-normal profit margins - expected to be around 27% this year, compared with 7.
The main one involves changing the tax base from shareholder income to above-normal profits, or rents.
Shareholder income includes a normal risk-adjusted return plus any above-normal profits or rents.
Our main recommendation is to change the current CIT from one based on shareholder income to one based on above-normal profits or rents.
Based on the literature review, we developed a simple framework that incorporates a Disruption Contingency Plan (DCP) to provide business continuity and opportunity to increase market share in the event of supply chain disruptions, thus creating normal or above-normal profits.
Disruption Contingency Plan <[equivalent to]> Business Continuity + Market Share <[equivalent to]> Normal or Above-Normal Profits
2]EJK) and
above-normal profits and, by the same token, other firms are experiencing smaller producer surplus and below-normal profits (suffering economic losses).
s above-normal profits deserve applause and not ridicule.
If so, though, it's something of a problem to call such above-normal profits "monopoly profits" and to insist that Acme Co.
Indeed, the very efficiencies that LTCM and its competitors brought to the overall financial system gradually reduced the opportunities for
above-normal profits.
Since all
above-normal profits would be competed away, prices should be aligned with cost now to remove the incentive for entry.
This challenge is suspect because if a market is competitive,
above-normal profits, whatever their origin, should be driven down to a competitive level.
