Profit before tax and Public goods: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Create page. Source: Economics help webpage https://www.economicshelp.org/micro-economic-essays/marketfailure/public-goods/)
 
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(PBT).  
''Economics''.


A measure of the overall profitability of a business, before taking account of the effects of taxation.
Examples of 'pure' public goods include flood control, street lighting, policing and national defence.


The definition of public goods includes non-rivalry and non-excludability.


Profit before tax is intermediate between Profit before interest and tax, and Profit after tax.
 
Non-rivalry means that when a public good is enjoyed, it doesn’t reduce the amount available for other people.
 
Non-excludability means that it is not possible both to provide such a good and prevent others enjoying it. For this reason, public goods are more likely to be efficiently provided by the public sector, rather than by the private sector.




== See also ==
== See also ==
* [[Interest cover]]
* [[Antitrust law]]
* [[Net operating profit after tax]]
* [[Cartel]]
* [[Operating profit]]
* [[Competition & Markets Authority]]
* [[Profit after tax]]
* [[Economies of scale]]
* [[Profit before interest and tax]]
* [[Free rider]]
* [[Profit before tax margin]]
* [[Monopolistic competition]]
* [[Return on capital employed]]
* [[Monopoly]]
* [[Tax]]
* [[Natural monopoly]]
* [[Oligopoly]]
* [[Perfect competition]]
* [[Private sector]]
* [[Public sector]]
* [[Regulation]]
* [[Trust]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]

Revision as of 00:52, 15 May 2020

Economics.

Examples of 'pure' public goods include flood control, street lighting, policing and national defence.

The definition of public goods includes non-rivalry and non-excludability.


Non-rivalry means that when a public good is enjoyed, it doesn’t reduce the amount available for other people.

Non-excludability means that it is not possible both to provide such a good and prevent others enjoying it. For this reason, public goods are more likely to be efficiently provided by the public sector, rather than by the private sector.


See also