ECON-1006EL Chapter Notes - Chapter 7: Credit Theory Of Money, Financial Capital, Average Variable Cost
16 Oct 2015
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Firms: single proprietorship, ordinary partnership, limited partnership (limited partners i. e investors, general partners i. e boss manager, corporation, state owned enterprise- owned by the government (crown, non-pro t. Multinational enterprise- rms operating in multiple countries: common for limited partnerships, very common for corporations. Finance: financial capital- money earned, physical capital- money in assets, equity- ownership of company, debt- money owed. Bond- debt instrument carrying a speci ed amount, a schedule of interest payments, and usually a date for redemption of its fare value. Interest- payment to lender as a fee. Term- time between date of issue and term. Inputs that are outputs from some other rm (i. e steel) Inputs that are provided directly by native (i. e land) Inputs that are the services of workers. Economic pro ts= revenues - (explicit + implicit costs: implicit costs- opportunity cost of owners time and opportunity cost of owner"s capital, opportunity cost of time- money owner could make at other job- current pay.
