Microeconomics and its Impact on Business Operations - Desklib

BMP4003 Business Environment

Contents
 Introduction
 Microeconomics
 Factors of Microeconomics
 Market Structure
 Economic Profit
 Business Organisation
 Conclusion

INTRODUCTION
 The BBC report highlights the importance of each economic factor
and how small factors indirectly affects cost and price of goods and
services.
 This summer in UK due to rise in transportation cost and port
congestion, selling price of large outdoor games like trampoline,
swings and climbing frames rises by 40-50% and they become
more expensive.
 Rise in prices caused decrease in demand of trampoline and other
toys.

Explain the term Microeconomics before
evaluating the crucial statement of the article
 Economics is categorized in two different modules. Microeconomics is the
model which analyse behaviour of consumer at individual level toward
business initiative.
 It helps firms in their decision making process in terms of production,
exchange and consumption and allocation of limited resources in efficiently
utilized manner.
 It determines the reason and procedure of benefit from effective production
and exchange of commodities and services between individual and provider.