Economics : A Deeper Understanding Of The World

Satisfactory Essays

The study of economics is a vas field including many formulas and eqagions that help us better understand the worlds markets. Economics is not only used in the life of thoses who study it but by everyone shopping or selling goods wheater they are aware of it or not. The study of economics has advanced throughout the years by economist such as karl marx, adam smith, david ricardo, john maynard Keynes and many other individuals that has dedicated their life to not only the advancement of science but the world in general and because of there dedication they we have a greate understanding of how economics works. Understanding concepts such as scarcity, supply and semand, and the profit maximization rule. Economics has also allowed us to identify serting behaviors such as the total variable cost, total fixed cost, average variable cost, average fixed cost and marginal cost and many more.
These concepts allow us today to develop a deeper understanding of the world around us and how business affects the world on a much larger scale for example the profit maximization rule states that the overall goal of any business is to maximize its profits. And a company will achieve this by affecting other areas of business such as the production cost, sale prices, and importantly output levels alone with other factors as they try to find a perfect balance between MR marginal revenue and MC marginal cost.
Marginal revenue is the per-unit selling price of an item sold by that company and

Get Access