Rate of Profit

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

r = (surplus-value)/(capital invested).

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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