lectur6-page16

lectur6-page16 - Has it? Or, are producers just behaving in...

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16 16 Self Interest u Producers : strive to maximize the amount of net income possible from selling commodities at the highest possible price (get as much as possible!) Now, let us look at self interest from the producer’s or seller’s point of view. Producers strive to maximize the amount of profit possible from selling commodities at the highest possible price the market will bear. Producers try to “squeeeeeze as much profit out of that consumer as they possibly can.” Do you blame them? They are trying to earn as much for their family as anyone else would. What would you do in their shoes? Now, I hear a lot of consumers complaining about how a producer or salesperson is trying to gouge them, or rip them off, or consumers scream that prices are just too high and the world has gone bonkers.
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Unformatted text preview: Has it? Or, are producers just behaving in their own self interest trying to earn as much as they can from the production of the goods and services they provide consumers. Do you see some conflict between the self interest of consumers and producers? Maybe conflict is too harsh of a word. What about competition? Does competition more adequately describe what is going on between the consumer and the producer? Do consumers compete with each other to get the goods and services they desire? Well, just go to the grocery store or Home Depot right after the weather person has announced that twenty inches of snow is coming or Hurricane Humphrey is on the way. Do producers compete with each other for consumers to buy their goods and services?...
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