What is the difference between household and firm?
Dear student
Regards
household | firms |
1) household are the owners of all factors of production | 1) firms are the hirer of factor of production from the household. |
2) household are the consumer of goods and services. | 2)firms are the producers of goods and services. |
3) they receive factor income in the form of wages, rent, interest and profit from firms. | 3) they make factor payment to household. |