Producing Goods
The term for goods or money used to produce other goods and services.
What is capital?
As price increases, quantity supplied increases.
What is the Law of Supply?
A product whose demand increases as income increases
What is a normal good?
The difference between total revenue and total costs in production., minus that initial investment cost too of course.
What is profit?
The Company's Health!
Who are liquid capital assets?
Land, labor, capital, and entrepreneurship are the main parts of this in economics.
What are the four factors of production?
The Price goes up and the quantity demanded goes down.
What is the Law of Demand
A product whose demand decreases as income increases.
What is an inferior good?
Cash and assets that can immediately be used for emergency/unseen obligations.
What are liquid assets?
The percentage of revenue, measuring profitability.
What is profit margin?
Cash, bank deposits, and easily sold investments.
What is liquid capital?
The laws only really work in this type of market.
What is a Perfectly competitive market?
Peanut butter prices rise and jelly sales fall in response.
What are complementary goods?
A firm’s goal - according to classic theory at least.
What is profit maximization?
It's a for profit business!
What is a firm?
Make that investment safer!
What is de-risking your investment?
The point where supply and demand curves meet,
What is equilibrium?
The price of Pepsi rises and Coke sales rise.
What are substitute goods?
We are approaching maximum profitability here!
What is MR=MC?
When a person, company, or country can produce something at a lower opportunity cost than someone else.
What is Comparative Advantage?
The process of using profits/revenue to buy more productive assets.
What is Capital Accumulation.
A good lacks this when the demand doesn't shift when the price goes up.
What is elasticity?
It lacks substitutes.
What is Monopoly.
The ownership interest in a company - measured financially. Essentially what the owners or shareholders own after all liabilities are subtracted from assets.
What is Equity?
They make a living providing capital...for equity of course.
What is a venture Capitalist?
That extra from producing just one more good.
What is marginal revenue?
Consumers need this to make good choices!
What is perfect information?
I just accept the price that people are willing to offer!
What is a price taker?
Equity that is publicly traded on stock exchanges.
What are stocks/Common stocks?
Commodities have this.
What is fungibility?