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Why does operating surplus not arise …

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Why does operating surplus not arise in subsistence sector
  • 2 answers

Aaiman Farhin 5 years, 1 month ago

Because in subsistence sector production is meant for self consumption, not to earn profit through sale in the market, that's why operating surplus does not arise in subsistence sector

Yogita Ingle 5 years, 1 month ago

Reason that goverment's operating surplus is zero or nil is that the main motive of government is maximisation of social welfare rather than profit.
The subsistence sector relies on natural resources to provide basic needs. Even the term subsistence means supporting oneself at minimal level. Accordingly, their operating surplus is minimal or zero.

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