Chapter 16: The Megacorp Flashcards
Technology
The application of scientific or other organized knowledge to practical tasks
Business Model
Way of making money in a market
Monetary Production
process of turning money into commodity inputs and ultimately selling commodity outputs for money
Monetary Production Economy Model
M > C… P… C’ > M’
* treats money and commodities as distinct things
M = amount of money C = commodity P = production process C ' = produced commodity M' = money received for produced commodity
Neoclassical Economy Model
C > C’
C = commodity
C ‘ = produced commodity
What does the second “arrow” in the Monetary Production Economy Model represent?
Perceived value of a product, which can be be changed via advertising
What could change the first “arrow” in the Monetary Production Economy Model?
Improving the product itself
What is Thorstein Veblen’s view of advertising?
Businesses are competing through persuasion rather than production of something of value