Match the column

Match the following theories of profit with their propounders:

Choose the correct option from those given below:

Correct option is C

1. Profit as Rent of Ability – F. A. Walker (IV)
· Walker compared profits to rent, arguing that just as superior land earns more rent, superior entrepreneurial ability generates higher profits.
2. Dynamic Theory of Profit – J. B. Clark (III)
· Clark stated that profits arise in a dynamic economy due to changes in demand, supply, production, and capital. In a static economy, profits would not exist.
3. Risk Theory of Profit – F. B. Hawley (I)
· Hawley proposed that profit is a reward for risk-taking. Entrepreneurs take risks in business, and higher risks justify higher profits.
4. Innovation Theory of Profit – Joseph A. Schumpeter (II)
· Schumpeter's Innovation Theory argues that entrepreneurs earn profits by introducing innovations (new products, technology, or business models).