Behavior and Production
In our first two modules we identified two broad groups of economic actors; they were households and firms. In our study of demand we looked at households as consumer units effecting demand for goods and services in the product market. On the supply side of the product market are the economic (or business) firms. They are the producers (and sellers) of goods and services. As a manager, your job is to use the available production function efficiently; this means you must determine how much of each input to use to produce output (production). When the price of an input you need goes up, it affects you.
When economic times get tough, some businesses experience downturns that lead to the loss of jobs or even the closing of their doors.
Although this may be the case in many industries, it is not true for everyone. Some types of businesses survive, and often thrive as the result of economic struggles.
Drawing on what you have learned thus far, what type of products or business would survive in a recession? Please discuss individual behavior theory in support of your choice