goods-producers

Examples of goods-producers in the following topics:

• Allocation, Provisioning and the Economic System

• Average and Marginal Cost

  • Marginal cost is the change in total cost when another unit is produced; average cost is the total cost divided by the number of goods produced.
  • It is the cost of producing one more unit of a good.
  • The amount of marginal cost varies according to the volume of the good being produced.
  • The average cost is the total cost divided by the number of goods produced.
  • Short run average costs vary in relation to the quantity of goods being produced.

• Economics as a Study of the Allocation of Scarce Resources

  • What goods and services should be produced?
  • How should those goods (and services) be produced?
  • There are often different ways to produce a good.
  • The amount of the good to be produced may influence the ways in which a good is produced
  • When should the goods (and services) be produced?

• Production Outputs

  • Producing these outputs incur costs which must be considered when determining how much of a good should be produced.
  • This means that above all else they will produce goods and services to the degree that maximizes their profits.
  • Fixed costs are those expenses that remain constant regardless of the amount of good that is produced.
  • Average total cost is the all expenses incurred to produce the product, including fixed costs and opportunity costs, divided by the number of the units of the good produced.
  • If it does not produce goods, the firm suffers a loss due to fixed costs, but it does not incur any variable costs.

• Defining Absolute Advantage

  • A country has an absolute advantage in the production of a good when it can produce it more efficiently than other countries.
  • Absolute advantage refers to the ability of a country to produce a good more efficiently that other countries.
  • In other words, a country that has an absolute advantage can produce a good with lower marginal cost (fewer materials, cheaper materials, in less time, with fewer workers, with cheaper workers, etc.).
  • Absolute advantage differs from comparative advantage, which refers to the ability of a country to produce specific goods at a lower opportunity cost.
  • China can produce such goods more efficiently, which gives it an absolute advantage relative to many countries.

• Defining Producer Surplus

  • Producer surplus is the difference between the amount producers get for selling a good and the amount they want to accept for that good.
  • Producer surplus is the difference between what price producers are willing and able to supply a good for and what price they actually receive from consumers.
  • To find the resulting total producer surplus, all of the rectangles for the individual price levels are added together, and the total area is the total producer surplus.
  • In the figure, producer surplus at different prices is represented by the pink rectangles.
  • Producer surplus is the shaded area directly above the supply curve, up to the equilibrium point.

• The Importance of Factor Prices

  • Comparative advantage is the ability of one country or region to produce a particular good or service at a lower opportunity cost than another.
  • These entities will then trade the goods they produce for the items that it would be expensive for them to produce.
  • Labor intensive goods on the other hand will be very expensive to produce since labor is scarce and its price is high.
  • In response to that increase, the country will produce fewer goods that rely on other factors.
  • This country produces one good that is labor intensive, clothes, and one that is capital intensive, cars.

• Importing

  • It is a good that is brought in from another country for sale.
  • Imported goods or services are provided to domestic consumers by foreign producers.
  • While imports are the set of goods and services imported, "imports" also means the economic value of all goods and services that are imported.
  • A country enhances its welfare by importing a broader range of higher-quality goods and services at lower cost than it could produce domestically.
  • Comparative advantage is the concept that a country should specialize in the production and export of those goods and services that it can produce more efficiently than other goods and services, and that it should import those goods and services in which it has a comparative disadvantage.

• Public Goods

  • A public good is a good that is both non-excludable and non-rivalrous.
  • Public goods can be pure or impure.
  • The production of public goods results in positive externalities for which producers don't receive full payment.
  • This is called the "free-rider problem. " If too many consumers decide to "free-ride," private costs to producers will exceed private benefits, and the incentive to provide the good or service through the market will disappear.
  • Those listeners who do not make a contribution are "free-riders. " If the station relies solely on funds contributed by listeners, it would under-produce programming.

• Marketing Classes of Products

  • Likewise, a refrigerator manufacturer might purchase sheets of steel, wiring, and shelving in order to produce its final product.
  • Industrial products can either be categorized from the perspective of the producer and how they shop for the product, or the perspective of the manufacturer and how they are produced and how much they cost.
  • Forests, mines, and quarries provide extractive products to producers.
  • Simultaneous Production and Consumption: Service products are characterized as those that are being consumed at the same time they are being produced.
  • In contrast, goods products are produced, stored, and then consumed.