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Why Doesn't a Lorenz Curve Ever Bow Above the Line

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Why doesn't a Lorenz curve ever bow above the line of equality?


Definitions:

Separable Processing Costs

Costs that are incurred after the split-off point where multiple products are generated from a common process and can be directly attributable to each product.

After Split-Off

Refers to the stage in a production process after which multiple products are generated from a single process or input.

Process Further

The continuation of operations on goods or information to add more value before final output or completion.

Profit Difference

The change in profit resulting from differences in sales, costs, or other financial factors between two periods.

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