BMP4003 Business Environment: Microeconomics and Market Structure

This report, focusing on BMP4003 Business Environment, delves into the core concepts of microeconomics and its impact on business operations. It begins with an introduction highlighting how microeconomic factors, such as transportation costs, directly influence the price and demand of goods like trampolines. The report then explains microeconomics, including utility and production theories, and categorizes it into positive and normative streams. It further examines market structures, classifying them into perfect competition, oligopoly, monopoly, and monopolistic markets, and discusses how these structures affect business. The report also defines economic profit and its significance for business health. Finally, it explores business organization, emphasizing its structure and its role in achieving business goals. The conclusion summarizes the crucial role of microeconomics in determining business operations, profit margins, and market position, using the trampoline example to illustrate the impact of small economic changes.