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Firms, markets, and price
- Intro Lesson: a2:58
- Intro Lesson: b2:30
Firms, markets, and price
Lessons
Coordination in An Economy
Firm: a business organization that hires factors of production, and utilizes those factors to produce goods and services to sell.
Market: a medium that allows buyers and sellers to get information, and do business with each other by exchanging goods and services.
Property Rights: A social agreement that presides over the legal ownership, use, and disposal of resources, goods, or services.
Money: is any commodity or token that is acceptable as payment for goods and services.
Competitive Market: a market with many buyers and sellers so that no single buyer or seller can influence the price.
Money Price: the amount of money needed to buy a good or a service.
Relative Price: the ratio of one good relative to the price of another good. This is an opportunity cost.
- IntroductionFirms, Markets, and Price Overview:a)Coordination in An Economy
- Four complementary social institutions
- Firm
- Market
- Property Rights
- Money
b)Competitive Market and Price- Competitive Market
- Money Price
- Relative Price