Business functions and The Value chains

This week we discussed the economic system of the US, including key indicators such as GDP, Productivity, and the Business Cycle.

We contrasted fiscal and monetary policy, discussed the Supply and Demand curves as well as their equilibriums, and practiced writing an Income Statement. 

Producer Value (aka Producer Surplus) is calculated by the Willingness to Pay (WTP) minus the Price. Similarly, Consumer Value (Surplus) is Price minus the Cost of Goods Sold (COGS).