Profitability of Big Oil
…operating profit margins to operating profit margins in other sectors: For example, a software company that clears $90 million in net income on product sales of $1 billion would earn…
…operating profit margins to operating profit margins in other sectors: For example, a software company that clears $90 million in net income on product sales of $1 billion would earn…
…taxing economic rent: Windfall or supernormal profits are any profits in excess of normal profit and are above and beyond that necessary to keep entrepreneurial resources in their current usage….
…gross profit margin to cover its accounting costs as well as provide for a normal return to its invested capital. Our U.S. manufacturer has two types of accounting costs: production…
…profitability. (See equation below) As the numbers in the graph increase, profitability increases. The red line shows the maximum profitability for each employment rate. Link to graph. This time period…
…utilizing labor and capital in the aggregate. The equation for profit maximization (orange line) is simply the derivative of the profitability measure above with respect to x then solved for…
…and including the very day of the election, a right on which their status as a nonprofit corporation did not depend, then why should huge for-profit corporations owned collectively by…
…will supply. Then entrepreneurs will un-employ labor and capital because they see their profit rates maximize. So the normal model has AS and AD moving together. In Keynes model, the…
…trillion of its own production. Ultimately that is not profitable for firms. Production itself would unavoidably deteriorate shareholder dividends. In the aggregate, profit rates would be incredibly terrible if the…
…as we have come to accept a private for profit business do in our version of capitalism. Though it was not always just about profit or profit primary vs secondary….
…a riskless profit opportunity. Then the Peso devalued. Milton Friedman is given credit for arguing, before the devaluation, that the apparent riskless profit opportunity was no such thing. The bottom…