There are several theories that attempt to explain the concept of profit in economics. The main theories are: (1) Ricardian theory of rent which states that profit is the reward for not using land, (2) Marxian theory which argues that profit arises from surplus value generated by labor but extracted by capitalists, (3) Austrian theory which sees profit as the result of correctly anticipating consumer demand, (4) neoclassical theory that views profit as the reward for risky capital investment and entrepreneurship, and (5) institutional theory which proposes that profit is determined by market structure and competitive conditions.