Business Economics: Analysis of Major Economic Factors

Business
economics

Contents
INTRODUCTION...........................................................................................................................3
ANSWER 1.....................................................................................................................................3
ANSWER 2.....................................................................................................................................4
ANSWER 3.....................................................................................................................................6
ANSWER 4.....................................................................................................................................7
ANSWER 5.....................................................................................................................................9
ANSWER 6...................................................................................................................................10
ANSWER 7...................................................................................................................................11
ANSWER 8...................................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business economics is a dedicated analysis of all the major factors which are present in
the economy. The business economics is mainly concerned with study of various macro and
micro economic factors which impacts functioning of a business. The macro economics in a
business mainly relates to the policies in the banking environment, micro economic environment
in a business states the elasticity and demand of products. In this project various answers related
to business economics are provided with deep analysis (Merigó, Rocafort and Aznar-Alarcón,
2016).
ANSWER 1
a. A monopoly is problematic for both economy and government of gets a dominating
position at the marketplace. When the situation of domination by monopoly occurs in an
economy, first of all it spoils the quality of products and services. If example of De beers
Group is taken into consideration, it was having market share of 80%, this company
dominated the whole marketplace. Monopoly can also increase the cost of production
which could increase the cost of product and services at the marketplace (Townsend,
2019).
b. Government play a major role in curbing the monopoly practices in an economy, USA
banned AT&T due to its violation of anti-trust law. Government can easily ban
companies which are impacting harm on society and economic situation of a country.
c.