ECONOMIX BOOK SUMMARY PROFESSIONAL

The market it amoral, it does not provide goods that we need but goods that we want.

By innovating to improve our own well-being, we often improve the overall well-being of society. Profit inspires some of our greatest work. This includes finding the optimal balance between price and output, as well as charging different customer segments at different rates. Truffles which can only be cultivated from the wild represents a natural barrier while Viagra benefits from patent protection, a legal barrier.įirms consider what is going to make the most money in the long run by employing profit maximization strategies.

ECONOMIX BOOK SUMMARY PROFESSIONAL

Lebron James’s talents are uniquely suited to outperform others in professional basketball, if only marginally better, he gains an oversized share of the market. Slight talent advantages can render large profits in large markets. The market economy directs resources to where they can be used most productively. As more professional opportunities become available to women, the costs of having children rise.įirms attempt to maximize profit by taking ‘raw’ materials (steel, knowledge) and combine them in ways that add value. The average child-per-mother has fallen 45% since 1905. Intangible utility factors of job opportunities include mental well-being and culture.Īs costs increase, demand falls.

Capitalism uses price while in communism prices are set and products are then allocated on a first come, first serve basis. Maximizing utility does not necessarily mean acting selfishly.Ĭapitalism and communism both ration products. Economics is the study of how we do that.Įconomics operates on the assumption that people act to benefit themselves. The free market aligns self interest with improving the overall standard of living for most members of society.Įconomy is the art of making the most out of life. Naked Economics is one of those books that changes the way you see the world.īelow I summarize some notes: Chapter 1 - The Power of Markets

Economix book summary