Business Law
Páginas: 3 (675 palabras)
Publicado: 17 de junio de 2012
Andres Sacoto
Business Law
UEES
The capitalism
To start talking about the capitalism, we should start saying who the most influential person is in this system. Adam Smith is widely cited as thefather of modern economics and capitalism. He wrote several works about the economics, but The Wealth of Nations, is considered his masterpiece and the first modern work of economics. It earned him anenormous reputation and would become one of the most influential works on economics ever published.
Capitalism is an economic system in which the means of production are privately owned andoperated by profit. Economists usually emphasize the degree that government does not have control over markets (laissez faire), and on property rights
The capitalism system takes place in a certain place,what we called the market. What happen in the market in a capitalist economy is that the prices of goods and services are controlled mainly through supply and demand competition, where supply is theamount of a good or service produced by a firm and which is available for sale. Demand is the amount that people are willing to buy at a specific price. Prices tend to rise when demand exceeds supply,and fall when supply exceeds demand. In theory, the market is able to coordinate itself when a new equilibrium price and quantity is reached.
Competitors play an important role in the capitalistmodel. Competition arises when more than one producer is trying to sell the same or similar products to the same buyers. In capitalist system, competition leads to innovation and more affordable prices.Without competition, a monopoly or cartel may develop. A monopoly occurs when a firm supplies the total output in the market, the firm can therefore limit output and raise prices because it has no fearof competition. A cartel is a group of firms that act together in a monopolistic manner to control output and raise prices.
In the capitalist exist something that we called free market capitalism,...
Business Law
UEES
The capitalism
To start talking about the capitalism, we should start saying who the most influential person is in this system. Adam Smith is widely cited as thefather of modern economics and capitalism. He wrote several works about the economics, but The Wealth of Nations, is considered his masterpiece and the first modern work of economics. It earned him anenormous reputation and would become one of the most influential works on economics ever published.
Capitalism is an economic system in which the means of production are privately owned andoperated by profit. Economists usually emphasize the degree that government does not have control over markets (laissez faire), and on property rights
The capitalism system takes place in a certain place,what we called the market. What happen in the market in a capitalist economy is that the prices of goods and services are controlled mainly through supply and demand competition, where supply is theamount of a good or service produced by a firm and which is available for sale. Demand is the amount that people are willing to buy at a specific price. Prices tend to rise when demand exceeds supply,and fall when supply exceeds demand. In theory, the market is able to coordinate itself when a new equilibrium price and quantity is reached.
Competitors play an important role in the capitalistmodel. Competition arises when more than one producer is trying to sell the same or similar products to the same buyers. In capitalist system, competition leads to innovation and more affordable prices.Without competition, a monopoly or cartel may develop. A monopoly occurs when a firm supplies the total output in the market, the firm can therefore limit output and raise prices because it has no fearof competition. A cartel is a group of firms that act together in a monopolistic manner to control output and raise prices.
In the capitalist exist something that we called free market capitalism,...
Leer documento completo
Regístrate para leer el documento completo.