Although it may not be apparent business plural
In the neoclassical tradition in economics-indeed, in the classical tradition which Marx was critiquing-production by businesses is treated as a C- C’ process. All business plural activity involves converting commodity inputs to commodity outputs that are more valuable for consumers. Figure 4 clearly distinguishes money and commodities. This allows us to see the steps involved in converting money into commodities and creating new commodities. Money is then created through the sale of these new commodities. We’ll refer to the whole process of turning money into commodities inputs and then selling commodity outputs for money as monetary production. These business plural distinctions have profound implications for Marxian (or radical) economics. This is a short description of the business model that can be used to describe different business models.
Traditional Business Plural Model
Figure 4 shows three ways managers, engineers, and markers can influence the production of monetary money. The M to P arrow is the first. It represents a traditional business plural model. Money is used to invest in a production process that produces outputs. This could be a new factory, or a team of researchers and developers (R&D), to develop new products and improve production processes. The key point is that the goal is to produce something, turning stuff C into stuff ‘. This is presumably in the hopes that people will pay more for C’ than what was spent on C to make it.
The second arrow is for a new business model. This means that the money production process can be altered in a different way. You will all you can eat sushi see that the initial money is not going to production but to the manufactured commodity, C’. This indicates that investments were made to increase the perceived value of the product sold by the business plural. The first arrow would indicate that the product has been improved. However, arrow 2 is about changing the perception of the product’s value without changing its actual product. You’ve probably already guessed that advertising is the best way to do this.
Thorstein Veblen is the founder of institution economics and it’s worth quoting here business plural
The ultimate goal of systematic advertising by larger businesses concerns is…a monopoly on custom and prestige The greatest end of consistent advertising, however, is to establish such differentiation monopolies based on popular conviction …. This organized fabrication of popular convictions has a cost. It is evident by statements such as that the owners of a well-known household remedy, which is widely believed to have a low pecuniary value, have made a lot of money from advertising for several million dollars per year. This is not a unique case.