Principals of Microeconomics Essay examples - 1372 Words

In the modern economic system presented in the world today, microeconomics, and the study of such, is a vital part of the budding economic scholar. In most circumstances, microeconomics is based on the cumulative study of how individuals and firms, or a combination of the two, make decisions regarding the allocation of resources, typically in markets where goods and services are bought and sold. This allocation, or optimization of limited funds through distribution, usually follows 2 standardized theories: the Consumer and Producer. Consumers usually choose to maximize their available preference in the market, with a limited income value or time aspect. This is evident in the world economy, with consumers always being fiscally motivated†¦show more content†¦Within these categories, many sub-markets branch out. Competitive Markers are the most common, having many sellers providing similar products to many buyers. Competitive businesses make profit based off of the relationshi p between net and gross income, and depend on providing a more reasonable price than its competitor. This type of market is seen mainly with a capitalist economy. Monopolistic Markets are similar to Competitive, but they differ in the type of product. Monopolistic businesses provide differing items that all provide a common service. A Monopolistic business gains profit by providing a product that the same basic service as another business, but differs in small details that contour to different types of buyers. The auto industry, proving scooters, motorcycles, automobiles, and other forms of differing transportation is an example. Oligopolistic Markets are less common, but still prevail in the modern economy. An Oligopolistic business is one with few competitors, basing its revenue off of â€Å"outsmarting† its opponents by analyzing their decisions and predicting the outcome. Having an analysis of an opponent provides the basis for Oligopoly, as income is based on providing a product that has more features than another product, released to the public around the same time. The Cellular industry provides a pristine example of the Oligopolistic Market. A Monopoly is one of the more rare markets, mainly dueShow MoreRelatedEssay on Microeconomics and the Board Game Monopoly1024 Words   |  5 Pages All I ever needed to know about microeconomics I learned from the Hasbro board game Monopoly. Some people, like myself, need practical models in order to understand certain concepts and theories. In our text book The Economy Today it completely ignores the intrinsic value of business decisions because you can’t put a numeric value on it. The game Monopolyâ„ ¢ is all about the numbers. In the game of Monopolyâ„ ¢ you have goals: The object is to bankrupt all opponents. To do so, you must beRead MoreMeasuring Price Sensitivity And The Macroeconomic Environment Essay1625 Words   |  7 Pagesstudies detailing the relationships and microeconomic factors between price sensitivity and the macroeconomic environment. This report explored each category listed below, as businesses, in particular, XYZ Company, must use microeconomic principles to make and validate decisions based on the following factors: price elasticity, consumer choices, production and costs, supply and demand, aggregate supply and aggregate demand, and macroeconomic measurements. Microeconomic prin ciples aligned with macroeconomicsRead MoreMicroeconomics Is The Branch Of Economics That Studies And Analyzes The Market Behavior Of Both Individual Firms Essay1384 Words   |  6 PagesMicroeconomics 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 asRead MoreMicroeconomic Topic Article Review: Price Gouging707 Words   |  3 PagesMicroeconomic Topic Article Review: Price Gouging The recent Time Magazine article Post-Sandy Price Gouging: Economically Sound, Ethically Dubious, evaluates the recent price gouging by businesses during Hurricane Sandy (Futrelle). Examples of price gouging include raising prices on batteries and gas to astronomic levels, with the knowledge that the captive public audience will purchase the products regardless of the price. Businesses that have raised prices include bodegas, supermarkets andRead MoreThe Effects Of Minimum Wage From A Microeconomic Perspective1640 Words   |  7 Pages The Effects of Minimum Wage from a Microeconomic Perspective Nathaniel Fishburne Embry-Riddle Aeronautical University Introduction The first minimum wage law was implemented in New Zealand and Australia in the late 1900s. In 1940s, George J. Stigler founded the first standard model of minimum wage. The model predicts that the if â€Å"minimum wage system is set above equilibrium wage level, it would create unemployment because some previously employed workers will lose their jobs whileRead MoreManagerial Economics : Microeconomics And Macroeconomics Essay838 Words   |  4 PagesThe purpose of the individual assignment is to read each chapter and then summarize the chapter. The first chapter summarized is chapter one. Managerial Economics uses microeconomics and macroeconomics principals to manage businesses. This analytical approach gives a logical aspect to management. Hopefully with a logical approach using economic theories this will enable managers to maximize managerial decision to increase profits. There are seven forces that can affect long-run profitabilityRead MoreMicroeconomic Theory Essay17 57 Words   |  8 PagesRunning head: Module 1 Homework Module 1 Homework Michael J Feller Allied American University Author Note This paper was prepared for ECN 150: Introduction to Microeconomics, Module 1 Homework taught by Dr. Dani Babb. PART I Directions: Please draft a three page long document in APA format in which you address the questions below. You must cite at least three scholarly sources within the context of your work and cite your references according to APARead MoreThe Effects Of Minimum Wage From A Microeconomic Perspective1670 Words   |  7 Pages The Effects Of Minimum Wage From A Microeconomic Perspective Nathaniel Fishburne Embry-Riddle Aeronautical University Introduction The first minimum wage law was implemented in New Zealand and Australia in the late 1900s. In 1940s, George J. Stigler founded the first standard model of minimum wage. The model predicts that the minimum wage system. It set above equilibrium wage level, would create unemployment because some previously employed labors lose their jobs while some find itRead MoreEco 550 Week 1850 Words   |  4 PagesFirm Only for this spring quarter 2013, quiz purposes MULTIPLE CHOICE 1. The form of economics most relevant to managerial decision-making within the firm is: a.|macroeconomics| b.|welfare economics| c.|free-enterprise economics| d.|microeconomics| e.|none of the above| 2. If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decision, any business decision is profitable if: Read MoreInternational Trade And Economic Growth1317 Words   |  6 PagesThe gains from trade are dynamic because they cause changes in economy‘s evolution through time. From a macroeconomic perspective, we can analyze the gains from trade by focusing on the relation between trade openness and economic growth. From a microeconomic perspective we can analyze the gains from trade by focusing on connections between firm productivity and access to international markets. Recently, the literature on the dynamic gains from trade takes a different approach rather than broad-based