BUS 082 Lecture Notes - Lecture 1: Invisible Hand, Monopolistic Competition, Oligopoly
5 Aug 2020
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A business provides goods and services for a profit. Businesses are created by our free enterprise economy, we have the freedom to start a business, hire people, and sell products. They have the freedom to succeed and make a profit, and also to fail. Almost none, one type of each product. 1723-1790, smith was a scottish political economists and moral philosopher. Wrote the wealth of the nations in 1776. Self-interested behavior regulated strictly by competition and the laws of supply and demand. It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but it is from their regard for their own self interest . Specialism: if people do the job that they are most skilled at and interested in, they will pursue their own profit and enhance the wealth of the whole society.
