ECON 208 Chapter 7: Week 6

• School: McGill University
• Department: Economics
• Course: ECON 208
• Professor: Paul Dickinson

Document Summary

A firms that has a legal existence separate from that of the owners. state-owned enterprise o. A firm that is owned by the government. Firms that provide goods and services with the objective of just covering their cost. Firms that have operations in more than one country. Equity is the funds provided by the owners of the firm. Debt is the funds borrowed from creditors outside the firm. Profits paid out to shareholders of a corporation are called dividends. A bond is a debt instrument carrying a specific amount, a schedule of interest payments, and a date for redemption of its face value. Intermediate products are inputs that are outputs from some other firms. Factor of production o o o land labour capital. The production function is a functional relation showing the maximum output that can be produced by any given combination of inputs: q= f(l,k, q is a flow of output o o.