Profit incentive
What Profit incentive means in Economics GCSE, as defined for AQA.
Definitions of Profit incentive
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Profit incentive in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
The greater profit offered by higher prices, which usually increases the quantity supplied, ceteris paribus.
The potential for higher profit provides a strong financial incentive for producers to expand production.
Topics that use Profit incentive
- Supply for goods and services (AQA GCSE)
- The importance of cost, revenue and profit for producers (AQA GCSE)
Related terms
- Average cost
- Average revenue
- Change in supply
- Cost minimisation
- Costs of production
- Ethical and moral interests
- External shocks
- Financial performance
Using Profit incentive 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.
Practise Economics questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge