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lectur7-page38 - produce function illustrates the payments...

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38 38 Rationing Process What to Produce? Consumers Producers Distribution Financial Physical Organize Prodtn. Process Functions of Any Economic System and Consumer Sovereignty In a capitalist economy, consumers determine “what is produced” through consumer sovereignty. Therefore the arrow from consumers to the “What to
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Unformatted text preview: produce function illustrates the payments that consumers make for goods and services. Remember that only those goods and services that can be sold for a price greater than or equal to their cost of production will survive in the market place over the long run....
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