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If we look at profits from socialists point of view, we find that they believe in the abolition of profits. According to socialists, the value of the commodity is determined by the quantity of labor expended during its production. As all value is due to labor, so it must go to him and not to the entrepreneur. If the entrepreneur takes away something from the share, of the labor, that is legalized robbery.

In our opinion, if the entrepreneur is earning normal or abnormal profits by superfluous means, then they must be checked.

For example, if an entrepreneur is paying less to the labor than their marginal net product or is bribing the legislature for passing tariff legislation, or is selling the goods in black market in order to maximize the difference between the total receipts and the total costs of production, then every sane person will condemn this behavior of the entrepreneur and will regard these profits as unjustified.

Similarly, if an entrepreneur due to his monopolistic position charges too high price for his products and thus fleeces the customers, then that kind of profits can also not be defended and so they should be controlled.

But if a businessman is earning just normal profits by honest means, then they can be justified in every respect. Profits are an incentive to the entrepreneur for undertaking, coordinating, directing and bearing the risks in a business. If the entrepreneur is not duly rewarded for the role which he performs in the process of production, then all production activities will come to a standstill.

Profits are the payment for the services of an entrepreneur in production and so they must be paid to him.

We, thus; conclude that profits which an entrepreneur earns by unlawful means should altogether be checked. The abnormal profits which an entrepreneur gains due to his monopolistic position or by sheer chances should be controlled and the normal profits which serve as an incentive payment to the entrepreneur must remain in the business so that the productive activities of the economic organization may progress.