Economics B A-Level
Profit motive
What Profit motive means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Profit motive
Check what you remember
Read the wording for your board, then hide it and explain Profit motive in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
The prospect of higher profit margins that provides an incentive for producers to increase output and for new firms to enter the market.
Topics that use Profit motive
- Price mechanism (Pearson Edexcel A-Level)
Related terms
- Capacity utilisation
- Market dynamics
- Niche markets
- Price elasticity of demand
- Price mechanism
- Profit maximisation
- Resource allocation
- Scarcity
Using Profit motive in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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