ACC 406 Lecture Notes - Lecture 2: Canadian Tire, Banana Bread, Wi-Fi
Document Summary
Some large hardware stores such as canadian tire boast of carrying as many as 20,000 different products in each store. The quest for profit led firms to produce these goods. Producers looked for and found the least-cost combination of resources in producing their output. Resource suppliers, seeking income, made these resources available. Consumers, through their dollar votes, ultimately decide on what will continue to be produced: distinguish between the factor market and product market in the circular flow model. The resource markets are where the owners of the resources (the households) sell their resources to the buyers of the resources (businesses). In the product markets, businesses sell the goods and services they have produced to the buyers of the goods and services, the households. Households (individuals) either own all economic resources directly or own them indirectly through their ownership of business corporations.
