Are Business Managers Microeconomic Or Macroeconomic Market Participants In Business Case Study

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1. (a) Are business managers microeconomic or macroeconomic market participants? Explain. Business managers are microeconomic market participants. Microeconomics helps businesses to make important decisions by providing analytic tools about firms and market structures to improve a company’s business practices. (b) Why do most business managers take market conditions as given to their firm? Market conditions are constantly changing; the market conditions that the firm started with may not be the same market conditions a few months later. This gives business managers the opportunity to keep up with change and continuously improving their skills and assets. (c) Provide an example of a macroeconomic event that would affect firms. A macroeconomic event that would affect firms is unemployment rates. High unemployment rates have a big affect on the economy. A high percentage amount of people unemployment means the loss of disposable income for consumers to spend. (d) Provide an example of a microeconomic event that would affect firms. A microeconomic event that would affect firms would be a price increase on products. For example, a price increase on milk could affect the sales of dairy products at your local grocery store. (e) Explain how a microeconomic view of international trade differs from a macroeconomic view of international trade. Microeconomic view of international trade differs from a macroeconomic view of international trade by comparative advantage. A

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