A production possibilities frontier shows the way that the relationships between two different products influence each other. It can show the way that one product reduces the demand for another product or it can show the way that the production of a certain product can increase the demand for a different product.Continue Reading
A production possibilities frontier can also show the way that the addition of employees can increase or decrease production. For example, if there are a farm and a furniture making company, people who work on the farm may be recruited to the furniture company. The first person that is recruited will increase the production of products at the furniture company. The second and third people who are recruited may also increase the production.
When the fourth person or any person after is recruited from the farm to the furniture company, the production may not increase as much as when the first few people were recruited. This could be a result of reduced amount of supplies and reduced amount of space for the additional workers. This will then affect the way that things are produced on the farm. The farm has lost people who are employed and the people who have been recruited to the furniture company may not be working as much as they would have been on the farm.Learn more about Economics
A marketing intermediary is a distribution channel and way for producers of various products and services to indirectly sell to the masses. The marketing intermediaries are used to get the product or service to the consumer and are often called "middlemen."Full Answer >
The disadvantages of monopolies are not to the monopolistic companies themselves, but are instead suffered by their competitors and the overall market through the effects of pricing discrimination, price fixing and the influence of "corporate cartels" that are able to deter competition through shared directorship and company mergers. Monopolies can act as "price makers" and force their competitors to become "price takers." Lacking the economies of scale enjoyed by a monopolistic company, a smaller company can then be "priced out" of the market, which leaves the field open to the monopoly company.Full Answer >
Modern capitalism traces its origins to the 13th century, with the increasing wealth and influence of a merchant class in Italy and the Netherlands, and to the inception of the first great banking families in 14th century Florence. Modern capitalism began to take recognizable shape at the onset of the Industrial Revolution, especially once stock broking became popular. Another important event in the history of capitalism is the South Sea Bubble.Full Answer >
"Socioeconomic" refers to the influence of finances and educational advantages on social status. The term is most often used in explanations of class. Sociologists believe there is a direct correlation between the number of opportunities provided to individual and the abilities of those people to climb the social ladder.Full Answer >