Invisible Hand

Microsoft, Nintendo, and Sony

terms

specialization- when people are really good at making certain goods. makes a market by having buying and selling

households- are who would normally buy the finished products by the firms.

firms are who makes the finished goods and buys back resources to make new products

self interest- why people buy and sell good things to make it better or easier for themselves

competition/invisible hand- groups making similar products keep each other in check by lowering the price so more people will by the cheaper. It helps groups find their prices that are reasonable.



xbox, playstation, and wii

The three systems fight with each other. Microsoft and Sony try to come out with better games not available for the other system, whereas Nintendo just tries to make a cheap system with not near as many features and games available. Microsoft and Sony compete to keep their prices lower so the other doesn't get the upper hand.