scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 1,084
Microeconomics is the study of the choices that individuals and businesses make and the way these choices respond to incentives interact and are influenced by government Microeconomics involves the analysis of how consumers make decisions about what to consume how firms decide what and how much to produce and how the interactions of consumers and firms determine how much of a good will be sold and at what price Many interesting questions can be approached by applying the methodology developed For example how will a cut in price of V3 Motorola hand - phone affect the quantities of these items that people buying It is the standard approach of microeconomics although not without controversy to assume that consumers seek to maximize satisfaction and firms seek to maximize profits The mechanism through which consumers and firms interact with each other is the market Microeconomics analyzes the determination of market demand and supply various forms of market structures and how they affect economic efficiency As what youve read above the economic choices that individuals businesses and the governments make and the interactions of those choices answer the three major questions that microeconomics focus To give an idea the type of questions that microeconomics deals with lets start with a simple example Consider some of the important decisions a firm says Dell Computer needs to make First Dell needs to decide what kind of computers to produce the processor hard disk capacity RAM modem CD-ROM installed software monitor etc Second Dell needs to decide how to produce the computers in one location or in different locations equipment and technologies to use make or purchase choices etc What may determine Dells production decision consumer demand technological feasibility costs of production products of other computer producers and so on Third Dell needs to decide how to price its computers This again will depend on things such as consumer demand and production costs as well as
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA