Other Applications of The Term
The social profit from a firm's activities is the normal profit plus or minus any externalities or consumer surpluses that occur in its activity. A firm may report relatively large monetary profits, but by creating negative externalities their social profit could be relatively small.
Profitability is a term of economic efficiency. Mathematically it is a relative index – a fraction with profit as numerator and generating profit flows or assets as denominator.
Read more about this topic: Profit (economics)
Famous quotes containing the word term:
“Why did you give no hint that night
That quickly after the morrow’s dawn,
And calmly, as if indifferent quite,
You would close your term here, up and be gone”
—Thomas Hardy (1840–1928)