definition profitability
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definition profitability

Under the theoretical framework of the theory, the theory of commodity market equilibrium and the monetary market equilibrium of Keynesian theory are unified. Marx's theory of interest rate decisions from the perspective of the source and essence of interest, taking into account the institutional factors in the role of interest rate decisions of interest theory, its theoretical core is the interest rate is determined by the average profit margin. Marx believed that under capitalism, interest is a part of profit and a form of conversion of surplus value. As the center of global automotive engine research and development and production, Britain's powertrain design has always maintained the world's leading level, especially in engine design. In 2013, the UK produced 2.55 million engines, accounting for 30 per cent of total European engine production, with 62 per cent of the engines exported to more than 100 countries. The savings rate in January has fallen to historic lows since last August's cut in bank interest rates. Although an enterprise's internal trade fair eliminates or reduces some of the market transaction costs, it also brings with it the specific transaction costs of the enterprise. The main reason for this defect is also the incompleteness of information. Specifically, first, there are various contractual relationships among enterprises, including contractual relationship between enterprises and workers, contractual relationship between enterprises and managers, etc. The enterprise should supervise the work of the workers and products that it employs, as well as the managers and other personnel, and induces them to work hard for the enterprise. So, companies are signing contracts and spending on oversight and incentives. Secondly, on the one hand, corporate decision makers often need to obtain information from subordinates. On the other hand, the decision-making information of the upper level of the enterprise should be realized by passing it to the subordinate. The information transmission of these two different directions will be distorted by the increase of subordination of enterprise scale, resulting in the loss of enterprise efficiency. Once again, the subordinate of the enterprise often conceals or passes the wrong information to the superior for selfish motives, so that the superior can make decisions that benefit the subordinate. Or, the subordinate's decision to the superior only passes or executes the part that is advantageous to oneself. These will result in the loss of enterprise efficiency. Thus, the expansion of enterprises is limited. According to coase's theory, the scale of the enterprise should be expanded to this point, that is at this point to increase the cost of an internal exchange cost equals the cost through the market exchange cost and so on.