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Discuss the Effects of Private Ownership of Production in a Market

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Discuss the effects of private ownership of production in a market economy.


Definitions:

Marginal Wage Cost

The additional cost incurred by an employer for hiring one more unit of labor.

Wage Rate

The amount of money paid to an employee by an employer in exchange for work performed, usually expressed per hour, day, or piece.

Unionization

The process of organizing workers into a union, a collective organization that negotiates with employers over wages, working conditions, and other labor issues.

Retail Trade

The selling of goods and services directly to consumers, typically in small quantities.

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