ECON 1000 Chapter Notes -Pearson Education, Foxconn, Canada Revenue Agency

• School: York University
• Department: Economics
• Course: ECON 1000
• Professor: Sadia Mariam Malik

Document Summary

After studying this chapter you will be able to. Explain what a firm is and describe the economic problem that all firms face. Distinguish between technological efficiency and economic efficiency. Define and explain the principal agent problem and describe how different types of business organizations cope with this problem. Describe and distinguish between the types of markets in which firms operate. Explain why markets coordinate some economic activities and why firms coordinate others. The invention of the world wide web has paved the way for the creation of thousands of profitable businesses, such as facebook, apple, and google. Most of the firms don"t make the things they sell. Intel makes its memory chip and foxconn assembles the iphone memory chip and foxconn assembles the iphone. A firm is an institution that hires factors of production and organizes them to produce and sell goods and services.