Microeconomics and Decision-Making
$19.95 Buy and instantly download this paper now
This paper explains the use of microeconomics to analyze certain aspects of the economy today such as employment, consumer behavior, environmental policy, and the effects of taxation. The paper shows how decision makers on all levels are influenced by information derived from a microeconomic analysis of the market and of the behavior of the consumer in that market.
From the Paper:"Microeconomics is the study of the marketplace and the behavior of the consumer. The information provided by microeconomic studies is important in decision-making in business, giving the decision-maker the necessary data for making choices, deciding strategy, developing programs, shaping products, and many other decisions that have to be made. Changes in consumer behavior, for instance, would give the decision-maker ideas as to what products to sell, how to advertise, prices to be charged, types of stores to be used for distribution, and so on. It is at the microeconomic level that the issues of supply and demand come together to decide the nature and health of the internal economy.
"Microeconomic theory is divided into several categories of decision making. In terms of the decisions made by consumers, microeconomics is interested first in the choices individuals make in deciding how to spend their income. When prices are taken as a given, consumers must decide how to allocate their income over the goods and services they may desire or need and to do so in a way that gives them the greatest level of satisfaction."
Cite this Term Paper:
Microeconomics and Decision-Making (2003, November 19) Retrieved February 06, 2023, from https://www.academon.com/term-paper/microeconomics-and-decision-making-37697/
"Microeconomics and Decision-Making" 19 November 2003. Web. 06 February. 2023. <https://www.academon.com/term-paper/microeconomics-and-decision-making-37697/>