In the Circular Flow Diagram, Who Owns the Factors of Production

question 247

Short Answer

In the circular flow diagram, who owns the factors of production and consumes all of the goods and services produced?

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Definitions:

Shipper

An individual or company that arranges the transportation of goods from one place to another.

Milk Run

A delivery method where a single truck collects cargoes from several suppliers or delivers goods to multiple customers, optimizing transportation costs and efficiency.

Single Supplier

A procurement strategy where all goods or services are sourced from one exclusive supplier, potentially simplifying operations but increasing risk.

Multiple Retailers

Retail operators who own and manage more than one retail outlet, spreading across various locations.