Complement (Resources)
Complement (resources) is a term used in economics to describe the relationship between two goods or services that are used together. It is based on the idea that the value of one good or service is increased when it is used in conjunction with another. For example, a car is more valuable when it is accompanied by a driver, and a computer is more valuable when it is accompanied by a monitor. The concept of complement (resources) is important in understanding how markets work and how goods and services are priced.
History of Complement (Resources)
The concept of complement (resources) has been around since the early days of economics. Adam Smith, the father of modern economics, wrote about the concept in his book The Wealth of Nations. He argued that the value of a good or service is increased when it is used in conjunction with another good or service. This idea has been further developed by economists over the years, and it is now a fundamental concept in economics.
The concept of complement (resources) is also important in understanding how markets work. When two goods or services are complements, the demand for one increases when the demand for the other increases. This means that the price of one good or service is affected by the price of the other. For example, if the price of a car increases, the demand for a driver may also increase, and the price of a driver may also increase.
Table of Comparisons
| Good/Service | Price |
|---|---|
| Car | $20,000 |
| Driver | $10,000 |
| Computer | $1,000 |
| Monitor | $500 |
Summary
Complement (resources) is a term used in economics to describe the relationship between two goods or services that are used together. It is based on the idea that the value of one good or service is increased when it is used in conjunction with another. The concept of complement (resources) is important in understanding how markets work and how goods and services are priced. For more information about this term, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Substitute (resources)
- Marginal utility
- Opportunity cost
- Supply and demand
- Price elasticity of demand
- Price elasticity of supply
- Production function
- Marginal cost
- Marginal revenue
- Marginal rate of substitution
