For example, take a firm that uses capital valued at 5 million euros (including offices, infrastructure, machinery, etc.) to produce 1 million euros worth of goods annually, with 600,000 euros going to pay workers and 400,000 euros in profits.16 The capital / income ratio of this company is β = 5 (its capital is equivalent to five years of output), the capital share α is 40 percent, and the rate of return on capital is r = 8 percent.
