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Unformatted text preview: decisions are taken by individuals and firms, which is assumed to act in their own self-interest, in contrast, command economy is a system in which the government controls the factors of production and makes all decisions about their use and about the distribution of income. 3. Why do you think sole proprietorship and partnerships typically incorporate (become corporations) when they experience rapid and sizable increases in their production, sales and profits? I think due to success and rapid increase of their production capacity they need to obtain more financial sources to be able to performing relative to its competitors and to satisfy their customer demands....
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This note was uploaded on 06/14/2010 for the course ECON 201 taught by Professor Johnson during the Spring '08 term at Aarhus Universitet.
- Spring '08