Assess The Difference Between The Butcher And The Cost Of Production

Satisfactory Essays
Adam Smith is saying that anything produced is only done so with the consumer in mind out of the producers self interest. A butcher makes his living by selling meat to the consumer. If a butcher could make more money with less cost of production by brewing beer. The butcher would close his butcher shop and begin brewing beer. However, many factors are involved in these decisions. These factors include the cost for the butcher to learn a new trade, the cost for a butcher to develop new customers, and the cost for a butcher to close his butcher shop and pay any outstanding debts. Everything produced is done so because there is a demand for what is produced and also because someone is able to fufill that demand efficiently. Adam Smith is merely
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