Question

Essence of profit and loss

Answer 1

Step-by-step explanation:

Profit or loss can be ascertained only in a market economy where prices of goods and various factors of production can be established. ... The rate of exchanges of various goods and factors are expressed in terms of money i.e. the amount of money per unit of a good or a unit of a factor of production.

Answer 2

$\huge\mathcal{\fbox{\fbox{\pink{Hello}}}}$

Within all other things being equal, profit is the manifestation of the expansion in the pool of real wealth and hence the pool of real savings. Also, profit and loss are the instruments by means of which consumers pass the direction of production activities into the hands of those who are best fit to serve them.

hope it helps you....