According to the $\underline{\text{ managerial efficiency theory of profit, }}$ above-normal profits can arise because of high-quality managerial skills.

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The managerial efficiency theory suggests that managerial skills can contribute to above-normal profits for a company. This theory asserts that the actions of skilled managers can improve the company's performance by improving efficiency, reducing costs, and taking advantage of opportunities that other firms may miss. As a result, companies that have highly skilled and efficient managers may experience higher than average profits.

According to The managerial efficiency theory of profit, ‾\underline{\text{ managerial efficiency theory of profit, }} managerial efficiency theory of profit, ​ Above-Normal Profits Can Arise Because of High-Quality Managerial Skills

According to The $\underline{\text{ managerial efficiency theory of profit, }}$ Above-Normal Profits Can Arise Because of High-Quality Managerial Skills