This paper analyzes the relations among different concepts such as earnings, profit, interest, rate, consumption … fundamental relation, shared by all five perspectives and whose ingredients are capital, profit, and cash flow. On the basis of …

income. A common idea is that excess profit is an unequivocalconcept, being the diference between profit and costs, where all … types of costs are taken into account, included the opportunity cost, i.e. the profit the entrepreneur would obtain if she … provided gives rise to a diferent way of modelling the notion of excess profit. While the existing models are tied to the …

Two measures of excess profit (residual income) are currently available in the literature: the standard one, of which …