The Capitalist revolution - Capitalism as an economic system

5 important questions on The Capitalist revolution - Capitalism as an economic system

For what reason are markets and private property essential to how firms function?

The inputs for the production and outputs belong to the firm (private property), and the firm uses markets to sell outputs and make profit ( markets)

How does most production take place in capitalism?

Production takes place using privately owned capital goods that are operated by workers who are paid wages

What happens with the power put in the hands of owners in capitalism?

Owners are then able to secure the cooperation of large numbers of employees
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How does capitalism limit the power of owners?

Because owners face the competition of buying and selling in markets

How did technology accompany the emergence of capitalism?

Because firms are competing with each other they constantly need new and more productive technologies.

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