Additional Net Income, the value of the excess surplus product created by socialist enterprises that operate under better than average conditions. Additional net income acts as a surplus over and above the net income created under usual production conditions, with average availability of means of production and average skills. In enterprises that operate under better conditions, the individual productivity of labour is superior to its social level, and the individual value of commodities is below their social (market) value. The difference between the commodity’s social and individual value forms additional net income, its source being more productive labour of the workers in enterprises that operate under better than average conditions. In the same period of time, more productive labour creates a larger social value than socially necessary labour does. Additional net income depends on economic and natural factors. The economic factors are differences in the standard of equipment of enterprises and the effectiveness of their productive activities. The latest technology and the more sophisticated production methods in some enterprises lead to better than average productivity of labour of the workers there and to the creation of additional net income. The natural factors that are prerequisites for additional net income are, in agriculture, higher soil fertility, a favourable location of a farm, its proximity to railway stations, piers, storage facilities, processing enterprises, etc., and, in extractive industry, greater amounts of mineral resources and more favourably located deposits of minerals. Additional net income is created in cooperative and state-owned agricultural enterprises (state and collective farms) on high and average fertility land, in mines extracting high-grade minerals, etc. (see Differential Rent under Socialism). Additional net income coming from the economic factors is transient. As more sophisticated tools and production technologies come to be used in most enterprises in the given industry, it ceases to exist. Additional net income provided by the natural factors is stable, because the natural conditions of the production are so.