Economic Behaviour (Routledge Revivals)

Chapter 2The Business ofProduction

In the last chapter we discussed the question of how families spend their income on different goods and services. We were looking then at the economy from the viewpoint of the consumer. We now have to turn to consider the different question of how all the food, clothing and household goods that consumers choose are there for them to buy. In other words we must now examine the production side of the economy.

Production Decisions

There are two common features about the Kind ot decisions tnat consumers and producers have to make. Both need to choose (1) what goods and services to buy or to sell and (2) how much of each of them. We must now look further into the ways in which these decisions are made on the production ...