Microeconomics Case Study

In Microeconomics, there are many subjects that gave me interest in investigating to progress in my professional career as an Accountant. For three years and throughout this semester, my studies in Accounting at Dalton State College have given me more interest getting into the business program to get a job as finance accountant. Microeconomics shows which cause a departure from these economic efficiencies and the result in the decline of the social welfare at its maximum level. Economic efficiency involves in three efficiencies; efficiency in production, efficiency in the production of goods among the people, which it is also called efficiency of consumption, and allocative economic efficiency that’s in the direction of production efficiency.

Consumption efficiency takes into account all the factors that decrease effectual value of a company: satiation, maldistribution, and other various output losses. Also, it consists of distributing the given amount of goods and services among the millions of people that consume in order to maximize the society’s total satisfaction. To illustrate this, the final output’s effectual value must be divided by its potential value and the consumption efficiency must be equal to that result in order to achieve one-hundred percent efficiency (Rottering). Even if the consumption efficiency and production efficiency are both present, it will result of goods that are produced and consumed but not preferred by the consumer’s

Additionally, it implies that the patterns of production should correspond to the desired pattern of consumption to the people. For example, have you ever gone birthday shopping for a five-year old? While you may not have been familiar with the hottest toy of the moment, your trip to the toy store might have shed some light on what to buy (Whiting). Furthermore, in order to achieve this type of efficiency, the resources must be allocated to the production of various goods that the maximum satisfaction can be obtained. In other words, once that is achieved, the marginal benefit or the amount of cash the person pays for the product will equal the marginal cost or the amount the company has to spend in order to make extra units of a good.
To Summarize, Microeconomics illustrates which cause of departure from the economic efficiencies and the result of decline and social welfare at its maximum potential even though the efficiency of production, efficiency of production among the consumers, and the allocation economic efficiency are included in economic efficiency. Even though economic efficiency shows us the way of how the economy works, it should be noted that microeconomics does not study the economy as a whole but a small part and inter-relationships of every