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Analysis of Micro Economic Concept

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Added on  2020-10-22

Analysis of Micro Economic Concept

   Added on 2020-10-22

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Analysis of Micro Economic Concept_1
Table of ContentsMicroeconomic Concept .................................................................................................................1Introduction to Economics..........................................................................................................1Production Cost...........................................................................................................................1Demand and Supply....................................................................................................................2Analysis of Micro economic Concept in organisational Context ...................................................3CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6
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Microeconomic ConceptIntroduction to EconomicsEconomics is the study of production, consumption as well as transfer of wealth.It deals with all the economic aspects of a business, thus, Economics considers not onlythe financial aspect of a business but also the economic aspects as well.Economics deals with the issue of allocation of scarce resources that a countryhas towards production of goods as well as services to satisfy the unlimited wants in aneffective manner. Thus it is much broader concept then managing finances of abusiness. It involves decisions which shapes the business of a concern.The Economic Concept is divided into two parts Micro Economic as well asMacro Economics. Micro economics deals with management of resources of anorganisation in a way that it will be most economical as well as beneficial to the firm. Itinvolves decisions like production, demand and elasticity. On the other Hand, Macroeconomics refers to managing the whole resources of the organisation in general. Itcovers the concept of Monetary policy, and fiscal policy that affects Production policythat may have a direct impact on the overall working of businesses within the nation.Macro economics also oversee the Taxation matters that prevails within an economicenvironment and how the same can be effectively managed over period of time throughproper policies and procedures (Altman, 2012).There are different types of economies like free market economy, Socialisteconomy, and a mixed economy which is a blend of both free market and socialism.The policies followed by these economy differs and thus will going to have a differentimpact on the businesses and individuals in general. Free market economy believes inmaking the resources available to private sector, while the social economies areopposed to it. Hence, Some nations follow free market system and some followssocialism system for the purpose of managing the resources of their respective country.Production CostIt refers to the cost that occurs while production of goods as well as services.The various types of cost that is involved in producing any goods as well as services areactual cost, average cost, Marginal cost etc. The profit is achieved by an organisation1
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