ECON 101 Chapter 7: ECON 101 Chapter 7 Producers in the Short Run
78
ECON 101 Full Course Notes
Verified Note
78 documents
Document Summary
In the short run, producers can only change labor (hire or fire) Firms: self-contained, profit maximizing entity that produces and sells goods and services: firms have an economic concept different to businesses. Owner owns all the business, has unlimited liability. He gets all the profit and owns all assets, but everything is dependent on him: partnership (multiple proprietorships) Two or more proprietorships working together with same views and profit goals. Jointly liable, although still consists of unlimited liability (liability may not be shared, one partner may accrue all liability: company. Consider a company as a separate identity and not consisting of proprietorships. Liability is limited to assets of company, not ownership. Everything that happens to company stays only with company: crown corporations. Owned by the country and general public: limited liability partnership (llp) Individual only has partial liability: multinational enterprises (mne)
