Market Economy

Market Economy
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  • I finally saved enough money to open my shop!
  • Great!
  • So how are you going to come up with prices for items in your store?
  • Well you see we live in a market economy so the prices of goods and services are guided by individuals
  • As you can see everyone can have their own business. 
  • Hello, welcome to my store!
  • So what is the governments rule if a market economy?
  •  A business must record the cost of inventory at whichever cost is lower – the original cost or its current market price, you normally apply the lower of cost or market rule to a specific inventory item, but you can apply it to entire inventory categories.
  • All this talk makes me feel like I need to go look for a property for sale.
  • Yeah you better competition is hard. 
  • Oh my gosh, YOU DID IT!
  • Oh, hey welcome to my store.
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