The correct answer is C.
a. Profit as Rent of Ability (4) – F. A. Walker
Walker argued that profit is a form of rent, which is a payment for the use of scarce resources. He believed that entrepreneurs are a scarce resource, and that they are therefore entitled to a share of the profits that their businesses generate.
b. Dynamic Theory of Profit (2) – Joseph A. Schumpeter
Schumpeter argued that profit is a reward for innovation. He believed that entrepreneurs are the ones who drive economic progress by introducing new products, new processes, and new ways of doing business. He argued that these innovations create new wealth, and that the entrepreneurs who introduce them are entitled to a share of that wealth.
c. Risk Theory of Profit (3) – J. B. Clark
Clark argued that profit is a reward for risk-taking. He believed that entrepreneurs are the ones who take on the risk of starting and running businesses. He argued that this risk is a real cost, and that entrepreneurs are therefore entitled to a share of the profits that their businesses generate.
d. Innovation Theory of Profit (1) – F. B. Hawley
Hawley argued that profit is a reward for organizing and managing resources. He believed that entrepreneurs are the ones who bring together the factors of production and organize them into productive businesses. He argued that this is a valuable service, and that entrepreneurs are therefore entitled to a share of the profits that their businesses generate.