Profit Equation Research Articles

Assessing the economic viability and factors affecting farmer adoption of black soldier fly larvae as broiler feed in Bangladesh: a comparative analysis

Despite its impressive economic growth, Bangladesh faces a persistent malnutrition challenge, costing over US$1 billion annually. The broiler industry plays a vital role in addressing nutritional needs by providing essential protein through meat and eggs. However, small and medium enterprises (SMEs) in this sector struggle with high feed prices, impacting their profitability and growth. Black Soldier Fly Larvae (BSFL) offers a sustainable and cost-effective alternative to conventional poultry feed, addressing both rising costs and environmental impacts. This study examined different aspects of BSFL, such as broiler feed, and farmers' perceptions of them in some selected areas of the Sylhet region of Bangladesh. A total of 60 respondents from three subdistricts in Sylhet district were selected using the purposive sampling technique. Data were analyzed through descriptive statistics, discriminative power value, binary logistic regression model, and profitability equation. Among the respondents, 70% (42) had a favorable attitude toward BSFL, and 30% (18) had a highly favorable attitude towards BSFL. Among eight socioeconomic attributes examined for the likeliness of adopting BSFL as broiler feed, the respondents' average income (p < 0.01), years of schooling (p < 0.05), and years of broiler farming experience (p < 0.01) were found to be significant. Further, farms using 50% BSFL and 50% traditional feed had a net return of BDT (Bangladeshi Taka) 35,045.67 (USD 419.71), higher than those using traditional feed, which had a net return of BDT 29670.67 (USD 355.38). Further, farms using 50% BSFL and 50% traditional feed had a benefit–cost ratio (BCR) of 1.16, compared to other farms with a BCR of 1.11. The study also found some problems causing slow growth in the adoption rate of BSFL in the study region, such as lack of training programs, extension campaigns, the uncertainty of input supply, and financial assistance. The study suggests making adequate measures to raise awareness about the profitability of BSFL as broiler feed, conducting training at the root level, and making inputs easily available to farmers.

Risk and Revenue Management in the Chinese Auto Loan Industry

The automobile consumption credit business promotes the development of the automobile industry. However, the current credit system in China requires further refinement. Thus, the credit loan business is associated with certain risks, and company profits are often negatively impacted by clients who default on loans. Based on the data, this article leverages the economic and financial theories of consumer credit risk control to construct a logistic model to predict customers' default probability. Then, a quadratic regression model is established to determine the optimal commission structure to balance profitability with incentives from retail stores. Results show that the macro-level variables are negatively associated with the probability of good behavior. The personal level variables exhibit a positive association. In addition, a negative coefficient in the quadratic profit equation indicates the presence of an inverted “U” relationship between profit and commission. Corresponding suggestions are put forward.

An Optimization Model for the Maximized Profit of Housing Development Project: A Case Study of Bangkok and Perimeter, Thailand

The objective of this research was to assess the profitability of the housing development project located in Bangkok, and the perimeter areas are Nonthaburi, Samut Prakan, and Pathum Thani, which are the result of good construction management. Moreover, the researchers’ previous data were used to predict the profit for construction planning, using stepwise multiple regression analysis. Then, we found the profit equation of the housing development project and applied it to the optimization model to clarify the model by the case study. The case study has 427 units, dividing the house into three types, with an optimization performed using the GAMS tool. In the same way, according to this optimization, it can be divided into two scenarios: scenario one found the maximized profit of the project to be 1053.91 MB, and scenario two was the result of making a sensitive analysis of scenario one and found the maximized profit of the project to be 1054.18 MB, which is the best scenario for the maximized profit of the project, and so it is the best choice for construction planning. The research contribution in this model can be applied to other projects that are suitable for large or densely populated cities, such as Beijing, New Delhi, and others. In the Conclusion section, we offer recommendations and detail future work that the researchers have discussed and described for the benefit of future research in housing development projects.

Increasing the rigour and relevance of elementary microeconomics

This paper redresses analytical weaknesses in elementary microeconomics from both short-run and long-run perspectives. By assuming variable production-time periods, the U-shaped average variable-cost curve in the short-run is shown to be valid only for perishable or non-storable products. The J-shape production curve, by contrast, is more appropriate for durable products that account for the vast majority of industrial production. While its validity has long been acknowledged in neoclassical economics, this paper subjects it to a graphical profit-maximisation analysis under both rigid- and flexible-production assumptions. To redress the reticence in elementary microeconomics to offer a profit-maximisation analysis under the long-run condition of variable investment factors, a basic profit equation is presented in terms of production/sales rate, production-system investment, and advertising investment. Profit-maximising production rate and investments are then determined graphically, leading to a rigorous explanation of economies of scales. The paper concludes by highlighting the role elementary microeconomics can play in introducing undergraduate students to strategic reasoning by integrating analytically the supply side and demand side of business management.

Relationship Between Growth and Profitability: An Empirical Analysis of U.S. Property and Liability Insurers

Using a data set of insurers operated in the U.S. property and liability (P-L) insurance market during the sample period, this study examines the interactions between firm growth and profitability. Dynamic panel regressions are conducted to investigate its relationship and other factors in the growth and profit equations. Regression models include firm specific variables and industry cycle variables to control and deliver a better estimation. The results of this study show that past profits have a major impact on future profits, thereby supporting that profits continue to be generated in the P-L insurance sector. The findings are consistent with two additional profit measures. Additionally, this research finds that lagged growth is benefitting present profit, specifically assessed by ROE. The growth model shows a positive association between lagged profit and current growth. This study further demonstrates how quickly smaller-sized businesses expand in this market. Other firm characteristics are identified in the profit and growth models as well.

Breeding objectives for dairy cattle under low, medium and high production systems in the tropics

A deterministic bio-economic model was developed to estimate economic weights for genetic improvement of lactation milk yield, fat yield, age at first calving, calving interval, mature weight and survival under low, medium and high production systems in the Tropics. Input parameters were obtained from dairy production systems in Kenya which has a tropical environment. The highest proportion of revenue is from the sale of milk followed by sale of heifers, cull cows and sale of male calves under all production systems. On the other hand, feed cost is the most important production cost followed by labour, marketing, reproduction and health costs, respectively. Economic values for the six traits were derived from a profit equation using revenue and production costs per cow per year. The economic values were then discounted using diffusion coefficients which account for differences between traits in the time when the improvement is expressed. Economic weights were robust to changes in input and output prices, changes in feeding strategies, and changes in milk and surplus heifer marketing strategies. Genetic standard deviations were multiplied by economic values to standardise the economic value of traits and to compare their potential for economic response. When expressed as proportion of their sum, these relative economic weights under the low, medium and high production systems for lactation milk yield were 51.36, 59.79 and 63.98%; for fat yield 4.50, 10.69 and 9.05%; for age at first calving 3.16, 2.66 and 0.55%; for calving interval 33.59, 19.88 and 20.05%; for mature weight 1.55, 1.34 and 1.19% and for survival rate 5.84, 5.64 and 5.18%, respectively. The predicted responses followed the same pattern as the relative economic weights. This shows that milk yield and calving interval were most important in all production systems but the value of response for traits differed between production systems with more emphasis on milk yield and less on calving interval in the high production systems. Moderate correlations were estimated between the breeding objective for the low, medium and high production systems. To maximise response in the overall breeding objective, different selection criteria are required for the three production systems.

Determinants of the profit rates in the OECD economies: A panel data analysis of the Kalecki's profit equation

The paper considers several determinants of profitability (investment rate, trade surplus, and budget deficit) in the OECD economies in the 1960–2014 period, using the Kalecki's profits equation framework. We estimate and utilise the aggregate profit rate measures for the total economy, employ a series of panel unit root and panel cointegration tests, and apply panel vector autoregressive (PVAR) model to examine the relationship between the profit rate and its determinants in the short- and long-run. The empirical evidence supports the hypothesis of positive effects of trade surplus on profitability, in line with Kaleckian views concerning the cyclical and secular dynamics of profits and profit restoration forces in the capitalist economies. The positive effects of investment rate on profitability are not confirmed, while the effects of fiscal activism on profitability are demonstrably negative; in contrast, a strong positive influence of profit rate on the pace of capital accumulation (investment) is indicated. The results are robust across sub-periods and panels with smaller cross-sectional dimension. Empirical results highlight the divergence between real investment and profitability, capital formation slowdown, and fiscal policy implementation problems in OECD economies over recent decades.

Technology valuation of cellulosic ethanol production by Kluyveromyces marxianus CCT 7735 from sweet sorghum bagasse at elevated temperatures

Technology valuation of cellulosic ethanol production by Kluyveromyces marxianus CCT 7735 based on the concepts of circular economy was investigated. After an acid-base pretreatment followed by saccharification at 50 °C for 72 h, the sweet sorghum hydrolysate was used to produce ethanol at three temperatures: 37, 42, and 45 °C. About 17.83 g/L of cellulosic ethanol was reached at 42 °C in 24 h, with a yield of 2769.8 L/hasorghum, almost double that obtained for corn straw. This was the best cellulosic ethanol production from sweet sorghum bagasse achieved by K. marxianus strain and, therefore, it was used in the technology valuation. This analysis was carried out through the application of the profit equation, in which the revenue corresponded to ethanol sales in the global market in 2020, and the costs were defined by the activity-based costing method. An integration between 1G and 2G ethanol production, without mixing material streams, was considered to improve the technology valuation analysis. As a result, the equivalent to 17.2% of the profit obtained with the sugarcane juice ethanol was achieved for the sweet sorghum bagasse. Therefore, the technology valuation indicated the potential of sweet sorghum bagasse in the biorefinery ethanol production.

COVID-19 Pandemic as a Mechanism of the Motion of an Aircraft in MIRCE Mechanics

The COVID-19 outbreak has shown that pandemics, like other rarely occurring natural catastrophes, have happened in the past and will happen in the future. Although humans cannot prevent dangerous viruses from emerging, they should be prepared to dampen their consequences for the economy and all of society. The main objective of this paper is to address the COVID-19 pandemic as a novel mechanism of the motion of an aircraft in MIRCE Mechanics, as only then the most effective technological, social and economic actions can be taken by humans to deal with it. Examples of devastating impacts on aviation world-wide are given in the paper, based on available statistics provided by governmental and global commercial aviation associations. Also, examples of professional and technological solutions taken to cushion the impact of COVID-19 on safety in aviation are presented. To assist airlines in the selection process of aircraft types that should be returned to the post pandemic service MIRCE Function ability and Profitability Equations are presented in the paper. However, they are applicable only when the mechanisms of the motion of an industrial system through MIRCE Space are known. As COVID-19 pandemic was not known until the beginning of 2020 business plans of airlines world-wide are for several orders of magnitude off the target, measured in flying hours delivered, revenue generated, an unprecedented number of aircraft grounded and prematurely retirement of B747 and A380 aircraft type from active service. Thus, this paper is bringing together the physiological side of COVID-19 and its physical impact on the operational side of airlines in order to assist them to predict the expected positive and negative work by each aircraft type grounded. This analysis will guide them to decide what type of fleet they should have in the post pandemic times and thus secure the business existence.

The Relevance of Kalecki for Financial Capitalism of the 2020s

ABSTRACT The paper focuses on four critical differences between capitalism of the Keynes-Kalecki times and the present-day financial capitalism. The first follows from the wholesale globalisation and liberalisation of financial and capital markets which drastically changed the nature of political opposition against full employment. The second results from changes in income and wealth distribution and in access to basic public services like health, education, and social security. The third is the evolution of the Schumpeterian entrepreneurial innovators to financial rent-seekers and speculators. The fourth relates to the question whether economic dynamics and business fluctuations are of Kaleckian nature, i.e. resulting from the feedback between the income generating effect, and the productive capacity augmenting effect, of private investment in fixed capital, or are they of Minskian financial instability nature. And if the latter is true, what is the room for any countercyclical policy that Keynes and Kalecki recommended. The essay ends with the question on how to include the Minskian financial instability of the present-day capitalism into Kalecki's canonical profit equation on which his theory of economic dynamics and business fluctuations is founded.

Efficiency and profitability in US not-for-profit hospitals.

This article examines the relationship between hospital profitability and efficiency. A cross-section of 1317 U.S. metropolitan, acute care, not-for-profit hospitals for the year 2015 was employed. We use a frontier method, stochastic frontier analysis, to estimate hospital efficiency. Total margin and operating margin were used as profit variables in OLS regressions that were corrected for heteroskedacity. In addition to estimated efficiency, control variables for internal and external correlates of profitability were included in the regression models. We found that more efficient hospitals were also more profitable. The results show a positive relationship between profitability and size, concentration of output, occupancy rate and membership in a multi-hospital system. An inverse relationship was found between profits and academic medical centers, average length of stay, location in a Medicaid expansion state, Medicaid and Medicare share of admissions, and unemployment rate. The results of a Hausman test indicates that efficiency is exogenous in the profit equations. The findings suggest that not-for-profit hospitals will be responsive to incentives for increasing efficiency and use market power to increase surplus to pursue their objectives.

User-Willingness-Based Decentralized EV Charging Management in Multiaggregator Scheduling

Electric vehicles (EV) offer a sustainable solution to the emission problems from transportation but require appropriate charging management facilities. This article presents a decentralized charging management scheme for EV scheduling in a multiaggregator scenario and is compared with a centralized scheduling (CES) strategy in terms of performance. Mobility-aware scheduling is implemented, where the EV arrival at charging stations is modeled using a survey conducted for the city of Jaipur, India, to evaluate the travel patterns. A new approach for modeling the willingness of the consumer has been presented that evaluates the willingness based on scheduling parameters, which include the charging cost, the charging duration, and the arrival/scheduling time of the vehicle. A penalty function has also been developed for the inclusion of the customer willingness into the profit equation. Results indicate superior performance of decentralized scheduling (DES) as compared with CES. Furthermore, the developed willingness indicator accommodates the preference of the EV driver, and the penalty factor represents the EV user's agreement with the scheduling in the profits. DES in collaborative scheduling provided the highest profits for the aggregators.

Including protein yield and mastitis resistance in dairy cattle breeding goal optimizes response to selection

Selection response from a two-tier nucleus breeding scheme using the current Kenyan breeding goal was compared with an alternative that also accounts for protein yield (PY) and mastitis resistance (MR). The economic value for PY was estimated using a bio-economic model. For mastitis resistance, like other disease resistance traits, the economic value cannot be estimated with profit equations because they have multi-fold effects on input and output, which affects profitability. Therefore, selection index methodology was used. Somatic cell count (SCC) was used as an indicator trait for MR. The ZPAN computer program was used to model the breeding schemes and evaluate response to selection. The alternative breeding goal, which included PY and MR, realized additional KES358.48, 613.55, and 613.65 in annual genetic gain, returns and profit per cow per year, respectively, compared with the current breeding goal. Economic values for PY and MR were KES778.99 and -2364, respectively. Relative economic values for milk yield (MY, kg), fat yield (FY, kg), protein yield (PY, kg), MR, calving interval (CI, days), preweaning daily gain (DG, g/day), postweaning daily gain (PDG, g/day), live weight (LW, kg), preweaning survival (SR1, %), postweaning survival (SR2, %), and length of productive life (PLT, days) were 23 689.80, 4 146.77, 34 665.50, -992.88, 33.66, 62.40, 159.80, 391.94, 987.04, 4 474.37, and 7.56, respectively. This implies that including milk quality traits such as PY in the breeding goal would optimize response to selection in dairy cattle production.&#x0D; Keywords: breeding objective, economic values, genetic evaluation, milk quality, traits, udder health

Tourism to serve culture: the evolution of an Aboriginal tourism business model in Australia

Turismo para servir a la cultura: la evolución de un modelo de negocio de Turismo Aborigen en AustraliaObjetivo (límite de 100 palabras)Este documento analiza la evolución de un modelo de negocio del Turismo Aborigen innovador, con un objetivo social común y empresarial determinado en un entorno remoto.Diseño/metodología/enfoque (límite de 100 palabras)Adopta un enfoque profundo y exploratorio de estudio de caso para descubrir las características claves de una empresa turística emergente. Las fuentes de datos cualitativos, incluyen materiales de planificación, promoción y organización de acceso público, así como entrevistas en profundidad con informantes claves y observaciones in situ. El modelo de negocio social de Yunus et al. (2010) proporciona el marco para el análisis de casos.Resultados (límite de 100 palabras)Los hallazgos destacan la profundización gradual de la implicación indígena, desde proporcionar simplemente un lugar para un negocio de turismo no indígena, hasta un total control de la gestión del negocio turístico con personal y temática indígena. Complementando las experiencias existentes de turismo no indígena, se redujo las necesidades iniciales de infraestructuras y reconocimiento del mercado, disminuyendo así el riesgo comercial para los Propietarios Tradicionales. A pesar de los cambios sustanciales en la estructura empresarial que los factores políticos y de maduración provocan, las motivaciones centrales parecían mantenerse fuertes. El modelo de negocios facilita la creación de valor a las partes interesadas de diversas formas.Limitaciones/implicaciones de la investigación (límite de 100 palabras)La naturaleza contextual del turismo indígena refleja las limitaciones de la metodología de estudio de caso cualitativa.Implicaciones prácticas (límite de 100 palabras)El modelo de negocio resultante proporciona una estructura contextualmente apropiada para la implicación de las comunidades indígenas en el turismo y poder lograr objetivos culturales y sociales. Mitiga el riesgo identificado de la baja demanda del mercado de experiencias de turismo indígena, al relacionarse con productos turísticos no indígenas establecidos, al tiempo que permite la oferta de productos independientes de los mismos.Implicaciones sociales (límite de 100 palabras)Los beneficios sociales son altos y tienen potencial de replicación en contextos similares en otros lugares.Originalidad/valor (límite de 100 palabras)El documento contribuye a la investigación emergente sobre modelos de negocio apropiados, desde el punto de vista cultural, en contextos de turismo indígena y valida una estrategia para superar la baja demanda. Ofrece un modelo que por un lado, facilita al turista una experiencia sostenible permitiendo la coproducción, mientras que para los anfitriones, fomenta la resiliencia comunitaria, el aprendizaje intergeneracional y mejora los medios de ganarse la vida. El caso resalta las oportunidades para una mayor investigación sobre la interrelación, las dependencias y los límites entre la ecuación de beneficios sociales y económicos, particularmente en el contexto de la economía de preservación cultural.Palabras claveTurismo indígena, creación de valor, coproducción, economía de preservación cultural, empresa social, región de kimberleyTipo de papelTrabajo de investigación

Growth paths for overcoming the digitalization paradox

Despite the demonstrated opportunities for revenue enhancement through digitalization, companies often experience a digitalization paradox. This paradox suggests that although companies may invest in digitalization, they often fail to achieve the expected revenue enhancement. In reporting research on 52 companies, we make the following four contributions: First, we focus on industrial companies in the business-to-business context, which largely have been neglected in previous research on digitalization. Second, we introduce the digitalization paradox as an important phenomenon in the discussion of revenue enhancement through digitalization. Third, we describe three growth paths: (1) commercializing digital solutions, (2) utilizing product connectivity, and (3) establishing an IoT-platform-based application business. For each growth path, the article takes a dynamic perspective on business models, highlighting triggers and modifications in business-model components (including value proposition, value-creation activities, and profit equation). Fourth, while the described modifications require initial investments to let these growth paths develop, we highlight how growth traps can prevent investments in business-model modifications from leading to revenue enhancement and how they can ultimately lead to the digitalization paradox.

Social innovation and social business: investigation of the business model of the Brazilian housing program 'my house, my life'

The goal of this paper is to analyse the Brazilian Government Housing Program House, My Life from the perspectives of social innovation and social business. Twelve in-depth interviews were performed with the housing Program's stakeholders. The following categories of analysis were defined: i) concept, legislation, metrics, and results of the program; ii) program business model; iii) financial profit equation and social profit equation. Although fulfilling the requirements of a social innovation initiative and offering large and significant social benefits, the Program cannot be characterised as a social business due to the need of constant Federal Government funding , and also because of the fact that its target group is treated as the program's beneficiary and not as a customer. The paper categorises the Brazilian housing program into social innovation schemas and discusses the suitability of these theoretical classifications in the praxis of a large developing country.

Islamic Social Banking Platform (Case of Resalat Islamic Bank)

In this paper, we examined an effective business for the ecosystem of FinTech for Resalat Bank. The article discussed three phases of Resalat Bank development as a Platform in formulating social business models that require new value propositions, value constellations, and profit equations, and as such, resembles business innovation. The result of the qualitative method for comparing Resalat Bank and Grameen Bank indicated that the business of Resalat Bank is more efficient than Grameen Bank. We also discussed the challenges of transformation from the current banking business model to Islamic banking as a platform and proposes a framework for Islamic bank as a platform at the macro and micro levels.

Understanding the low cost business model in healthcare service provision: A comparative case study in Italy

The cost of medical treatments may undermine timely and effective access to healthcare. We believe it is useful to examine innovative business models recently introduced in European countries, borrowing from less developed economies. This paper aims to analyze new business models of healthcare service provision that have recently been introduced in Italy, and its social component. In particular, we analyze the low cost business model in Italian healthcare. We carried out a comparative case study of three Italian low-cost organizations. The cases were selected using four social criteria: start-up capital; social value proposition; social value equation; and social profit equation. From the comparative case study, six main themes emerged: 1. Social relationships; 2. recruiting and engagement of medical and nursing personnel; 3. economies of scale; 4. cross subsidization; 5. management of financial surpluses; 6. patient involvement and participation. The cases reveal new ways of healthcare service provision and unravel innovative organizational dimensions falling into the low cost business model. The organizations both maximize profit and respond to the social need for healthcare at relatively low costs. The low cost business model is therefore able to respond to the demand for affordable healthcare, while providing social innovation.

Profitability of brokerage houses in Turkey

This paper uses a direct measure of efficiency to examine the relationship between market structure and the performance of brokerage houses in Turkey. This methodology involves two stages: First, a stochastic translog cost frontier is specified to obtain a direct measure of efficiency. Second, this measure is included in a profitability equation along with market concentration and market share variables. These two equations are then estimated using quarterly data from 112 brokerage houses for the period 2008–2015. The results show that the efficiency of brokerage houses does not influence profitability when measured directly. Market share, on the other hand, is found to be one of the main determinants of profitability, providing support for the relative market power hypothesis.

Bioeconomic of profit maximization of red tilapia (Oreochromis sp.) culture using polynomial growth model

The research purpose was to develop a model bioeconomic of profit maximization that can be applied to red tilapia culture. The development of fish growth model used polynomial growth function. Profit maximization process used the first derivative of profit equation to time of culture equal to zero. This research has also developed the equations to estimate the culture time to reach the target size of the fish harvest. The research proved that this research model could be applied in the red tilapia culture. In the case of this study, red tilapia culture can achieve the maximum profit at 584 days and the profit of Rp. 28,605,731 per culture cycle. If used size target of 250 g, the culture of red tilapia need 82 days of culture time.