Microeconomics and macroeconomics concepts aide in the understanding on how they affect the shifts of supply and demand affect equilibrium price and quantity. Microeconomics focuses on supply and demand (Colander, 2010). A company would look at ways to increase production that could decrease their prices compared to competitors. This would adjust the equilibrium price of products by increasing the quantity that is available. This would allow the company the ability to pass price savings to consumers. Macroeconomics is used as the economy changes such as with inflation (Colander, 2010). Inflation would cause a company to have increase cost of materials in producing their product. This creates a change in quantity to be provided as supply has to be adjusted to meet the decrease of demand due to the economy affects on equilibrium price.
Macroeconomic principles come into play when the whole market or more outside factors are involved. Examples of this in the video game industry, which I work in, would be when the rating system for games are under scrutiny, or when a new console is put on the market as competition. These outside factors affect not only the company I work for, but every other company in the industry, from the hardware manufacturers such as Microsoft and Sony, but also the game studios such as Activision, EA and Rockstar Games. Microeconomic principles are caused by and effect only my company in particular, such
Microeconomics focuses on supply and demand. A company would look at ways to increase production so that the company could decrease their prices compared to competitors. This would adjust the equilibrium price of products by increasing the quantity that is available. This allows the company the capability of passing price savings to consumers. Macroeconomics is used as the economy changes such as with inflation. Inflation would cause a company to have a boost of cost in materials from producing their product. This creates a change in quantity to be provided as supply has to be adjusted to meet the decrease of demand from the effects on equilibrium price.
Understanding the concepts of macroeconomics and microeconomics help understand factor that affects shifts in supply and demand because now one can see with clarity what are the categories and what those categories are, the ones influence supply and demand and how this same factor may bring equilibrium.
Many businesses consist with constant decision makings. It can be a group decision making or such as an individual decision making. Microeconomics is the part of economics concerned with single factors and the effects of individual decisions. Business take use of microeconomics data to make multiple of different choices, which could determine the success or failure of their business. Microeconomics is the reliability and currency of the information a business uses, therefore, is usually the most important strategy that the company or enterprise relies on when things get difficult or just wanting to grow their business taking a risk.
Firstly, Macro perspectives focus on the large scale aspects of society such as social stability and social change whereas Micro perspectives focus on the small scale level interaction between individuals such as a conversation. Micro perspectives talk about the day-to-day processes between individuals which human beings require. Human beings need people around them who they can relate to or form relationships and bond with which is a normal function of being a human, that is, to interact with others. On the other hand, Macro perspective deals with maintaining social order or structure among people. In addition, it focuses more on public concerns more than just the concerns of individuals. For instance, macro perspectives deals with issues of the world or society such as war, poverty, third world nations whereas micro perspectives analyses issues pertaining to the individuals such as the role of women, the nature of the family and factors or issues that cause people to migrate. It also, deals with the norms and values of a society which are symbols that shape individual in a society and their behaviours rather than people shaping the
Prepare a 3-4 page essay that summarizes how microeconomics affects your chosen company. Use your previous course paper assignments to assist you with this essay. Remember to use suggestions and/or comments that your instructor has provided you throughout the course. Be sure to cite your sources in APA format.
2. Microeconomics – the branch of economics, which deals with the individual decisions of units of the economy – firms and households, and how their choice determine relative prices of goods and factors or production.
Microeconomics involves supply and demand in an individual market, individual consumer behavior, and externalities arising from production and consumption; while, macroeconomics involves monetary/fiscal policy, reason for inflation and unemployment, and international trade/ globalization.
The Economy is the backbone to society. There are many factors that operate in, and govern our society’s economical structure. Factors such as scarcity and choice, opportunity cost, marginal analysis, microeconomics, macroeconomics, factors of production, production possibilities, law of increasing opportunity cost, economic systems, circular flow model, money, and economic costs and profits all contribute to what is known as the economy. These properties as well as a few others, work together to influence the economy. Microeconomics and Macroeconomics are two major components. Both of these are broken down into several different components that dictate societal norms and views.
The micro-macro dilemma relates to a variety of circumstances and situations and is essential for numerous decisions daily that people make. This is particularly true for many of the business decisions that organizations make in concerns to marketing.
I think that what we learned on market economics is the correct way of thinking about human interaction and the functioning of markets. Microeconomics offered an interesting, and potentially more useful, perspective on the market because it essentially told us how our individual decisions affect the market.
Efficiency is the ability of an entity to use alternative methods of production to get better outcomes. It is applied in production where equal input which relates to cost is lower compared to output in an organization. Allocative efficiency ensures that the correct mixture of input to get maximum output (Palmer & Torgerson, 1999). The study of economics means that there are limited resources to produce for the public and meet the needs of the consumers. Efficiency is intended to minimize the cost of production which trickles down to lower prices and higher demand.
The microeconomics environment is the study of individuals and firms or organisations, which are directly linked to business. The study of microeconomics focus on subsisting and prospective stakeholders of company.