People with a college education or an expertise are rewarded for their knowledge. Businesses seek to hire people that will help them get and maintain the upper hand over the competition. .
Businesses like Lexmark International, Incorporated, Wal-Mart, McDonalds, and Coca-Cola all started with one-person entrepreneurs. Entrepreneurs are risk takers who see a potential profitable possibility and set out to make their vision a reality. Ray Kroc, the founder of the McDonalds franchise, visited a hamburger stand in California owned by Dick and Mac McDonald. He was amazed at how quickly people were being served. Kroc was the exclusive distributor of a milk shake maker called the Multimixer, and saw the opportunity to sell his Multimixer to the McDonald brothers and to others. Mortgaging his home and investing his life savings he opened the first McDonalds restaurant in Des Plaines, Illinois. Today there are more than 30,000 McDonald's restaurants in 118 countries. .
How do the factors of production make our economy work? Businesses have to decide how they want to utilize their resources in order to obtain the best profit. These decisions effect how many jobs are available, how many goods and services are available, and how much these goods and services will cost the consumer and supplier alike. This being said, the relationship of buyer and seller is established. A buyer wants to get the goods or service at the best possible price, whereas the seller wants to be able to offer goods and services at a price that will show a profitable gain. The forces of supply and demand then come into play.
Demand is the willingness and ability of buyers to purchase goods and services. A person has to determine what best suits his/her needs and wants at a price that best fits into their financial means. There are millions of products available to consumers in today's market. Televisions are a good example of how demand differs from each individual.