Concept in Definition ABC

Profit is the wealth that one or the various parties involved obtain as a product of a transaction or economic process.

The gain is also known as economic benefit and implies the economic remainder from which an actor benefits as a result of carrying out a financial operation. In short, it is the ratio between income total minus the total costs of production, distribution and commercialization of, for example, a particular product or service.

Another way of talking about wealth, profit or economic benefit is to calculate the relationship between the product or the good resulting from the productive process and the inputs that were used to achieve it. Calculating profits is an operation through which the creation of wealth can be established by the individual or institution. If the relationship between output and inputs is positive (the value of what is created is higher than what is used), it is said that wealth is created. On the other hand, if the relationship is negative (the value of the products is lower than that of the inputs used), it is said that wealth is destroyed or losses are generated.

The types of benefits or gains can be normal, supernormal, subnormal, advertising economic and of various kinds.

In either case and in a free system economy As the capitalism or the model neoliberal, it is proposed that the more is invested in a goods production operation, the more money or profits are obtained for the investor. This is the model that has prevailed for most of the 20th century and that, according to theorists, goes against the sustainability of the planet in the long term, since the purpose of always obtaining greater profits also implies the investment of greater inputs and resources, sometimes not renewable for nature. In addition, many blame the neoliberal model for the imbalance between the poorest sectors of the world and those who have become richer.