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SECOND ESTATE: In past centuries, this included kings, queens, dukes and others of the ruling elite. In modern times, this includes business leaders who have extensive ownership of and control over resources, especially capital, entrepreneurship, and land.

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Lesson 22: Factor Supply | Unit 3: Factor Supply Page: 17 of 25

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In this unit, you should have learned about:
  • The three types of supply -- market supply, supply by a firm, and supply to a firm -- and the role supply to a firm has in the analysis of factor markets.
  • The four types of market structures based on market control of the buying-side -- perfect competition, monopsony, monopsonistic competition, and oligopsony.
  • The three notions of factor cost -- total factor cost, average factor cost, and marginal factor cost.
  • The role of market control in the equality or inequality of factor price, average factor cost, and marginal factor cost.
  • The two factor supply curves -- one horizontal, the other positively sloped -- based on no market control or some market control.


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INVESTMENT BORROWING

The acquisition of funds through the financial markets by the business sector which are used to finance investment expenditures on capital goods. In terms of the simple circular flow model, this is one of two basic demands for household saving diverted into financial markets. The other is government borrowing.

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RED AGGRESSERINE
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Today, you are likely to spend a great deal of time wandering around the downtown area wanting to buy either a set of luggage with wheels or a birthday gift for your aunt. Be on the lookout for the last item on a shelf.
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Only 1% of the U.S. population paid income taxes when the income tax was established in 1914.
"Carpe diem! Rejoice while you are alive; enjoy the day; live life to the fullest; make the most of what you have. It is later than you think."

-- Horace, Ancient Roman poet

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Bureau of Agricultural Economics
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