Microeconomics : Economic Policies Promote The Welfare Of The Masses

1417 WordsOct 9, 20156 Pages
Microeconomics is concerned on issues of an individual, such as firm, consumer, market and public sector organization (Wetherly and Otter, 2014). In addition, Microeconomics is related with millions of consumers and producers in free- market economy that works in decision making with regards to allocation of productive resources among thousands of goods and services (Chand, 2015). There are both theoretical and practical importances in Microeconomics which it helps economic policies promote the welfare of the masses (Chand, 2015). In business, decision making is as complex as the processes where it characterizes consumer’s choice. As supported by Davis (2015), microeconomic data in business is important in making variety of critical choices or anything which will either be successful or become a failure in terms of enterprises. It is important because it focuses on the reliability and currency of the information of a business. Also, both senior and top management decides in terms of data in business. One of the major influences on their decisions may entail logic, wherein it answers what the competition is doing, the state of the economy and a variety of other variable and unknown factors (Davis, 2015). According to Grimsley (2003), decision making in a business is affected by the influence Microeconomic factors. Also, these factors are narrow in scope which doesn’t actually affect the whole economy. Microeconomic factors influencing a business include Market size,

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