1  Part OneThe Market
 
 

1. Companies and domestic economies

1.1. Introduction

Companies are production units, whatever their legal nomenclature or size. They produce and supply finished goods that the market removes or buys, which doesn’t always happen. Producers face a risk: the possibility of obtaining losses. Companies pay certain monetary units to production agents to obtain the product, where this step entails a payment that is called income. This determines the product cost price, which added to adventitious, future or probable income from profits, lets the end product be obtained.

Cost + Profit = Total income6

The business owner organises production and capitalists cede the capital for production, with businesses receiving ...

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