Rate of profit

From Academic Kids

In economics, the profit rate refers to the relative profitability of an investment project or of an capitalist enterprise or for the capitalist economy as a whole. It is similar to the idea 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).

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