Profits
For the television series, see Profit (TV series)Profit, from Latin meaning "to make progress", is defined in two different ways. Under capitalism, profit is a positive return made on an investment by an individual or by business operations. Under the Marxist definition it is a mechanism of class exploitation, where surplus value is extracted by capitalists from their workers and suppliers beyond the point where costs are covered.
Under capitalism, methods of calculation differ between accountants and economists. Often, it is the difference between retail sales price and the costs of manufacture. However, the term is also used more generally to refer to the value added after all the factors of production have been credited their full opportunity cost. Nos Estados Unidos, nossa experiência e trabalho conjunto com consultores locais.
The profit motive—enterprises being free to make as much profit as they can given market conditions—is regarded by capitalists to be a good thing. It is held to give firms incentives for allocative efficiency and technical efficiency. This idea is a corollary of the theorems of welfare economics and utility maximisation. However, profits can include economic rents, which do not produce efficiency. For instance, a monopoly can have very high profits but produce less economic welfare.