profit ratio calculator
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profit ratio calculator

The concept of accounting income is called accounting income. According to the traditional view, the accounting income refers to the difference between the realized income and the corresponding expenses. It has the following characteristics: Economic profits in perfect competition and monopolistic competition market has a special purpose, a positive profit can attract more enterprises to enter the market, increasing competition and push the market equilibrium price low, exclude some enterprises lack of competitiveness in the market, to achieve long-term equilibrium; On the contrary, negative economic profit can eliminate some of the original enterprises in the market, because the supply is reduced, the market equilibrium price will be pushed up, and the long-term equilibrium will be achieved. The result of the two cases is that economic profits disappear from each manufacturer and the manufacturer's total income is at the lowest point of average cost.