Hello Classmates,
My name is Ashley Jones and I'm studying business administration and hopes when I
graduate that I can open and run my own business and it be successful. I'm 37 years
old with two kids ages 16 and 13. I'm almost done with my first year of college.
Microeconomics play a significant role in running a business. It focuses on how
consumers and business make decisions, including when consumers purchase goods
and how much they pay, and how a business determines its prices for products.
Microeconomics can help businesses make decisions about how to allocate available
resources such as input of production, time, and purchasing decisions. It can also help
businesses understand the working of the economy and formulate economic policies.
Some policies of microeconomics that could be useful when making business decisions
include the concepts of supply and demand, opportunity cost, in marginal analysis. For
example, a business owner might use supply and demand to determine the optimal
price for their product or service. They might also consider the opportunity cost of
their decisions, such as whether to invest in a new project or expand on an existing
one. Another example is marginal analysis can help a business owner determine the
additional benefits or cost of producing one more unit of a good or service.
