8-1Costs1 - Laugher Curve A woman hears from her doctor...

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1 Costs Chapter 8-1 (my version of it) Laugher Curve A woman hears from her doctor that she has only half a year to live. The doctor advises her to marry an economist and to move to South Dakota. Laugher Curve “Will this cure my illness?” she asked. No, but the half year will seem pretty long.” Introduction • In the supply process, people first offer their factors of production to the market. • Then the factors are transformed by firms into goods that consumers want. Production is the name given to that transformation of factors into goods. The Role of the Firm • The firm is an economic institution that transforms factors of production into consumer goods – it: – Organizes factors of production. – Produces goods and services. – Sells produced goods and services. – Virtual firms subcontract out all work. – More and more of the organizational structure of business is being separated from the business. The Role of the Firm •A virtual firm only organizes production.
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This note was uploaded on 01/01/2011 for the course ECON 101 taught by Professor E during the Spring '10 term at American College of Computer & Information Sciences.

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8-1Costs1 - Laugher Curve A woman hears from her doctor...

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