Bicycle production, for this company, involves acquiring a wide variety of inputs component parts and frame tubing, labor, equipment and machinery, plant and buildings. For example, the company purchases Japanese gear and brake assemblies, hires U.S. laborers to install gear and break assemblies, acquires tools necessary to install gear and break assemblies, and acquires and configures buildings in which bicycle assembly can occur. For simplicity, let us assume that each bicycle requires 500 productive activities. If Shasta did not exist, dealers must assemble their own bicycles. If bicycle dealers also did not exist, bicycle consumers must assemble their own bicycles.
Consumers produce their own bicycles.