Terms and tools
Microeconomics is one of the main fields of the study of economics. It considers the behavior of individual consumers, firms and industries. It is a branch of economics that studies how individuals, households, and firms make decisions to allocate limited resources in markets where goods or services are being bought and sold. It also, examines how decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the supply and demand of goods and services.
Microeconomics has been called “the bottom-up view of the economy”, or “how people deal with money, time, and resources.” One of the goals of microeconomics is to analyze market mechanisms that establish relative prices between goods and services and allocation of limited resources amongst many alternative uses. It analyzes market failure, where markets fail to produce efficient results, as well as describing the theoretical conditions needed for perfect competition.
These are the more important terms in the order in which you will encounter them. Many of the terms below describe people’s behavior or imply a theory about behavior. However, a tool is a conceptual creation that enables theories to be applied to various situations. In other words, not all of the terms are names of tools.
Economics is the study of choices people make in a world of limits. Choice ...
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... the parameters for getting into this industry. There may be barriers such as politics, economies, high cost, copy rights and/or patent control.
4. Oligopoly: This market has a small group of companies or organizations that hold control of a market, thus like in a monopoly, the standard in which it takes to get into this market are typically high. The product or services in this market are very similar in comparison. This makes the competitor interdependent as a result of the market variables3.
This concludes my report of a small portion of the business world, terms and tool with descriptions, ideas and issues, effects of markup prices in recession, risk of success or failure and the 4 degrees of competition with their definition has been reviewed. There are many more terms and tools to learn while gaining knowledge about starting a business and the economy systems.
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