Microeconomics Is The Branch Of Economics That Studies And...

Microeconomics is the branch of economics that studies and analyzes the market behavior of both individual firms and consumers, that help to understand the decision-making process of those individuals. Microeconomics analyzes the relationships between both the buyers and sellers as it studies the factors that influence both parties. Microeconomics focuses on the supply and demand of products and how small businesses price those items. Macroeconomics, however, focuses on the national’s economy as a whole and the basics of the business world. The main building blocks that make up microeconomics include: market structures, supply and demand, price elasticity, scarcity, marginal benefit, and marginal cost. During the initial phase of starting up a business, one of the major factors to consider is the type of market the business owner desires to be in. The four major market structures include, perfect competition, monopolistic competition, oligopoly, and monopoly. Each market has positive and negative attributes the business owners must account for. Business owners must also know the number of different sellers there are in a particular market, they must be able to handle the stress of running a business, and they must have a keen eye on the fluctuating prices in the market. Many entrepreneurs do not do enough research on their local economy, which ultimately leads to their failure. Both a monopoly and an oligopoly market are among the top rated due to their high profit rates.Show MoreRelatedWhat ´s Microeconomics?1069 Words   |  5 PagesMicroeconimcs is the branch of economics that studies and analyzes the market behavior of both individual firms and consumers to help underst and the decision-making process of companies and households. It analyzes the relationships between both buyers and seller and at the same time studies the factors that influence the choices of both those parties. Lots of people get Macroeconimics confused with Microeconomics, and the main difference is that Macroeconomics forcuses on the bigger picture. WhileRead MoreMicroeconomics : Define Any 10 Terms2481 Words   |  10 PagesI.) Definitions: define any 10 terms. Give examples where pertinent. 1) Macro Economics: Macroeconomics is a branch of economics, which deals with general economic factors including the national productivity and interest rates. It entails the study of behavior and aggregate economy and examines the wider phenomena of the economy. Examples of these changes include variations in the national income, inflation, unemployment rates, gross domestic rates, and price levels. 2) Model/ Theory: A businessRead MoreEconomics Paper2167 Words   |  9 PagesEconomics Paper University of Phoenix ECO365 May 6, 2013 Economics is a tool that we use in our daily lives even if we don’t always realize it. As people we all have things that we want, and things that we need. This includes things like food, clothing, and shelter, but it is not limited to those things. In order to get those things, people have to spend money. The issue is that everything that people need and want costs money. More often than not, people do not have the money to do both soRead MoreIntroduction to Micro-Economics2163 Words   |  9 Pages#61548;Economics is the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. There are many reasons to study economics, including 1.To learn a way of thinking 2.To understand society 3.To understand global affairs 4.To be an informed voter Economics has three fundamental concepts: a. Opportunity cost, b. Marginalism, and c. Efficient markets. a. Opportunity cost is the best alternative that we forgo, or giveRead MoreApple, Inc. Economic Analysis Essay2122 Words   |  9 PagesApple, Inc. Economic Analysis Daniele Ligons Southern Weseleyan University  Table of Contents apple, inc. history 3 Microeconomic factors 4 macroeconomic factors 4 supply and demand 5 competitors 7 Apple, Inc.’s Future 8 recommendations 10 summary 10 References 12 Apple, Inc. History In 1976, Steve Jobs and Steve Wozniak founded Apple Computers, Inc. The young founders did not finish college and had a vision of making computers smaller and easier to use. Initially, they began theirRead MoreEconomics12898 Words   |  52 PagesECONOMICS CHAPTER 1 ECONOMIC WAY OF THINKING SCARE RESOURCES WEALTH OF THE NATIONS ECONOMICS: ADAM SMITH STAR CITY Scarcity Scarcity is the basic and central economic problem confronting every society. It is the heart of the study of economics and the reason behind its establishment. Authors have defined scarcity in various way some if which are complexly stated. One author defines scarcity as a commodity or service being in short supply, relatives to its demand (KapurRead MoreGame Theory and Oligopoly Fall2627 Words   |  11 PagesEcon 101: Principles of Microeconomics Chapter 15 - Oligopoly Fall 2010 Herriges (ISU) Ch. 15 Oligopoly Fall 2010 1 / 25 Outline 1 Understanding Oligopolies 2 Game Theory The Prisoner’s Dilemma Overcoming the Prisoner’s Dilemma 3 Antitrust Policy Herriges (ISU) Ch. 15 Oligopoly Fall 2010 2 / 25 The Oligopoly Monopolies are quiet rare, in part due to regulatory eï ¬â‚¬orts to discourage them. However, there are many markets that are dominated by a relativelyRead MoreStrategic Management3433 Words   |  14 Pages Overview The formality of the strategic management process varies widely. Formality refers to the degree to which membership, responsibilities, authority and discretion in decision making are specified. It is an important consideration in the study and application of strategic management because the degree of formality is usually positively correlated with the cost, comprehensiveness, accuracy and success of planning. The requirements for small business indicate the need for a moderate degreeRead More Strategic Management Essay3356 Words   |  14 Pages Overview The formality of the strategic management process varies widely. Formality refers to the degree to which membership, responsibilities, authority and discretion in decision making are specified. It is an important consideration in the study and application of strategic management because the degree of formality is usually positively correlated with the cost, comprehensiveness, accuracy and success of planning. The requirements for small business indicate the need for a moderate degreeRead MoreThe Usefulness Of Study Of Bank Cost And Efficiency7640 Words   |  31 PagesComment on the usefulness of study of bank cost and efficiency in evaluating bank performance. Introduction From the very beginning of the bank history, we already know that the main operation of bank is to take loan and to make deposit. Since the first bank established in 12th century, bank is no more a simple institution where we exchange money but an agency considered to be speculative and hopeful. There is no doubt that the prosperity in modern society benefits a lot from the development of