econ chap 3 - Non durabe goods ( last less food and...

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Demand— what gets produced Supply—(labor, capital, natural resources) Produce output Farm --- Self sufficient (cooking meals, making clothes, tending to livestock, planting crops) Better technology increased urbanization and increased productivity Factories-- Specialization decreased the need for households to be self-sufficient Women— 1960’s 15% 2009 70% percentage of women with small children who went into labor force (increase in education so increase in opportunity cost… making them go into labor) Maximize utility— The satisfaction received from consumption Supply— To satisfy unlimited wants, households get a job to buy goods and services Demand goods— Durable goods (last atleast 3 years—car fridge)
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Unformatted text preview: Non durabe goods ( last less food and clothes) Services ( hokie football air service) Factories efficient division of labor direct supervision of production reduce transaction costs bigger machines Industrial Development of large scale factory production Firms Just as households maximize utility Profit= sales revenue- cost of production Sole Firm that has a single owner Partner 2 or more owners corporation legal entity established through articles of incorporations shares of stock (limited participation) s corporation limited liability, reduces double taxing cooperatives consumer producer chariable educational humantairan cultural * hospitals, schools...
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econ chap 3 - Non durabe goods ( last less food and...

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