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Why does operating surplus not arise …

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Why does operating surplus not arise in- 1)subsistence sector and 2)gereral government sector of the economy. Plzz rply me sir??
  • 1 answers

Yogita Ingle 5 years, 1 month ago

Operating surplus does not arise in the subsistence sector and in the general government sector because of the following reasons: (i) in the subsistence sector, production is meant only for subsistence of the producing families. Production is not meant for sale in the market. Accordingly, there is no operating surplus.

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