Wednesday, February 9, 2011

the principle of Microeconomics

Microeconomics is an area of economic that analyzes small part of overall economic activity. Microeconomics talk and discuss individual units such as households and firms, such as how households allocate their income to buy various goods and services. Economic discuss a variety of things including the following:



a. about determining the level of an enterprise for production was obtained at the maximum level.
b. discusses the company's costs in a certain product types in the market structure into companies and industries. In a broader review of the real center of attention is on the microeconomics enterprise sector that is how the company makes a profit in producing goods and services.
    Income is one of the company's goals, in an effort to obtain profit company needs to know in advance what items in produce, how much and sold at what price. In terms of their role of microeconomics is useful for helping to select the important factors that are relevant in a particular economic enterprise. microeconomics is useful as a basis for forecasting, so useful for managers in making decisions. We must know when to use microeconomics or macro economics. If the draw, there is a city, where the city is the science of macroeconomics, while individuals of each plant is microeconomics is a science. For example there are 2 factories in the city, the Nokian and samsungi, when 1000 employees of the company Nokian ask out, and they moved to samsungi company, then in terms of microeconomics of the firm Nokian is a huge problem, whereas in macro-economic terms it it does not matter because there is no unemployment. Examples of microeconomics is the reduction in the price of oranges a country, even though the price of oranges rose in all regions of the country was still include microeconomics, because if the price of oranges increased likelihood of goods other than the orange one will ever go down, so no problem in the macro economy, different if all other goods go up (inflation), then it is a problem of macro economics. study it effectively and fluently and basely...thanks


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