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.

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. Classical economists use profits to measure the happiness/utility/general welfare, gained by society, and understand that high profits demonstrate the high value of the factors used in the production of such goods.

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Been making loads of different chutneys. All profit goes to the Eagle Project - helping street children in Sao Paulo, Brazil
writerbrock (martin brocklebank) Tue, 03 Nov 2009 21:34:16 -0000
Been making loads of different chutneys. All profit goes to the Eagle Project - helping street children in Sao Paulo, Brazil
@websiteproject i will have to talk it over with some people. we are a non-profit group so this coming out of my own pocket.
DecaturFilms (Adam White) Tue, 03 Nov 2009 21:28:52 -0000
@websiteproject i will have to talk it over with some people. we are a non-profit group so this coming out of my own pocket.
Become the top 1% of sports betting wealth-seekers with my gilt-edged profit betting system http://cli.gs/8Y3Ns
FalconsBets (Falcons Sports Bets) Tue, 03 Nov 2009 21:10:03 -0000
Become the top 1% of sports betting wealth-seekers with my gilt-edged profit betting system http://cli.gs/8Y3Ns
Samsung Electronics triples its profit...http://p.gs/qtpi8
paola_io (Paola) Tue, 03 Nov 2009 18:55:40 -0000
Samsung Electronics triples its profit...http://p.gs/qtpi8
Ford's Near $1 Billion Q3 Profit Due to Social Media? http://ow.ly/yVy7 #ford #socialmedia
KathyHeasley (Kathy Heasley) Tue, 03 Nov 2009 18:55:39 -0000
Ford's Near $1 Billion Q3 Profit Due to Social Media? http://ow.ly/yVy7 #ford #socialmedia
Updated my blog with Good Review, Instant Profit Machine http://tinyurl.com/ykntd6o
nexxus (Larry Cockerham) Tue, 03 Nov 2009 18:30:27 -0000
Updated my blog with Good Review, Instant Profit Machine http://tinyurl.com/ykntd6o

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