Rate Of Profit
In economics and finance, the profit rate is the relative profitability of an investment project, of a capitalist enterprise, or of the capitalist economy as a whole. It is similar to the concept of the rate of return on investment.
In Marxian political economy, the rate of profit (r) would be measured as
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- r = (surplus-value)/(capital invested).
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where surplus-value corresponds to unpaid labor in the production process or to profits, interest, and rent (property income).
Read more about Rate Of Profit: Historical Cost vs. Market Value, A Prisoner's Dilemma
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