StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Supply & demand & elasticity issues. Theories of the firm. Macroeconomic issues - Essay Example

Comments (0) Cite this document
Summary
The essay studies basic economic concepts and principles and estimates their relevance, discusses various theories of the firm and analyzes the impacts of macro-economic factors on the firms. All these problems are considered with particular reference to Spain’s economy…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.6% of users find it useful
Supply & demand & elasticity issues. Theories of the firm. Macroeconomic issues
Read TextPreview

Extract of sample "Supply & demand & elasticity issues. Theories of the firm. Macroeconomic issues"

Download file to see previous pages The governmental actions include labor reforms which are discussed under a separate head. Supply & Demand and Elasticity Issues, Theories of the firm, Macroeconomic issues Table of contents PART ONE: Supply & Demand and Elasticity Issues 4 1. Supply and demand 4 2. Elasticity of demand 5 PART TWO: Theories of the Firm 7 1. Premises which underline the classical firm 7 Competitive markets 7 Perfect information 8 Full employment 8 Pricing of the products 9 2. Environmental changes 9 Role of the governments 9 Legal system 10 Globalization and liberalization 10 Corporate social responsibility 10 3. Theories of the firm 11 The Neoclassical Theory 11 The Transactions Cost Theory 12 The Principal–Agent Theory 12 Evolutionary theory 12 Behavioural theory 13 PART THREE: Macroeconomic Issues 15 i) GDP and Budget deficit 15 ii) Governmental actions and economy 16 Cuts in spending   16 Tax hikes 17 Borrowing money 18   Multiplier effect 18 Aggregate Demand 19 Aggregate Supply 20 Specific actions 20 iii) Supply side reform of the labour market 21 Conclusion 22 References 23 PART ONE: Supply & Demand and Elasticity Issues 1. Supply and Demand - Analysis of Statements “Both factors of demand depend on the market price. When the market price for a product is high, the demand will be low. When price is low, demand is high.” (Whelan & Msefer, 1996, p. 6) a) The price of a good falls, causing the demand for another good to rise. Hence, the two goods are substitutes. In fact in the case of substitutes, the demand for the substitute will fall leading to the price of the substitute to fall. Example: If the price of mutton falls, demand for mutton will increase, and not the demand for chicken which is a substitute for mutton. Conclusion: The statement is not correct. b)...
This essay presents a modern comprehensive analysis of the relevance of the fundamental principles of supply and demand and elasticity concept in the today`s world. Also various microeconomic theories of the firm are discussed in the paper, such as neoclassical theory, transactions cost theory, principal agent theory, evolutionary theory and behavioral theories.
The impacts of macro-economic factors on the firms are analyzed. The relevance of GDP and budget deficit to the operations of the firm in terms of its impact on their business is discussed with particular reference to Spain’s economy.
The micro and macro economic theories have been evolving over the period time in tune with the changes that have taken place. What is relevant during a particular period of time loses its validity under the changed circumstances. However, the understanding of these concepts is very important for charting out the new course of actions and formulate future strategy
Since 1945, many of the premises which underpin profit maximisation have been questioned, in particular whether firms operating in the real world actually behave like the “classical” firm.
There are changes which have taken place in the structure and/or conduct of industry that provide evidence to reject the “classical firm hypothesis”.
Maintaining flexibility in production and supplies is essential for responding quickly to the changes in the external environment which may be caused due to competition, governmental actions or state of the economy.
...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Supply & demand & elasticity issues. Theories of the firm Essay”, n.d.)
Supply & demand & elasticity issues. Theories of the firm Essay. Retrieved from https://studentshare.org/macro-microeconomics/1402529-supply-demand-elasticiy-issues-theories-of-the
(Supply & Demand & Elasticity Issues. Theories of the Firm Essay)
Supply & Demand & Elasticity Issues. Theories of the Firm Essay. https://studentshare.org/macro-microeconomics/1402529-supply-demand-elasticiy-issues-theories-of-the.
“Supply & Demand & Elasticity Issues. Theories of the Firm Essay”, n.d. https://studentshare.org/macro-microeconomics/1402529-supply-demand-elasticiy-issues-theories-of-the.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Supply & demand & elasticity issues. Theories of the firm. Macroeconomic issues

Human Performance: Theories and Principles of Motivation

I have been assigned two HRM consultants who are busy designing the motivation questionnaire to be administered to all the group employees. However, this also gave me an opportunity to reflect over my personal strengths and weaknesses as I would soon have the most responsible task of convincing the top management about the contents of the questionnaire and the finalization of motivation report and its possible uses in the group in the formulation of exact policies and tactics to improve employee morale. My immediate boss gave me this entire assignment breaking the line structure and formalized it by getting it ratified by the board. He also built an incentive and bonus deal for me to be awarded on the successful completion of the...
12 Pages(3000 words)Case Study

Porter nd Kotler's Theories

UK consumers аre the biggest spenders per cаpitа on clothing in the EU. While the import аnd export mаrket increаsed over the yeаrs, locаl production fell rаpidly by аpproximаtely 1 bn pounds. Аs а result of these figures it is obvious thаt the British fаshion industry is highly dependent on other countries’ textile.

А lаrge number of British consumers hаve becаme more price-sensitive under the slogаn ‘look good-pаy less’ however some consumers аre willing to buy higher-priced аnd exclusive clothing. The number of millionаires in the UK increаsed by more thаn 80% between 2001(230000) аnd 2004(425000) (Finch, 2007). This leаds to luxury аnd strong brаnd аwаreness. Аlthough the formаl weаr is more аnd mo...
10 Pages(2500 words)Case Study

Contemporary Managerial Issues in Accounts and Finance

Political theorists like Veblen argued that the separation of corporate ownership from control generates a transfer of power from a minority of stockholders to a group of decisive owners who have the control over the way of access to credit and finance (Roe, 1994, p. 5).
However, contemporary analysts of corporate power contested that dominance and ownership in modern corporations have shifted to a property-less group of managers. Consequently, this current shift of power and control in large modern corporations could usher in ultimate preoccupation over profit rather than non-financial motives. Furthermore, the separation of power and ownership will lead to the destruction of the traditional legal theory of property which en...
23 Pages(5750 words)Literature review

Physiological Factors While Dealing With Health Issues

The body’s metabolism includes all the physiological processes in the body. Enzymes serve as catalysts to biochemical reactions that form a part of metabolism. The two distinct chemical phases of metabolism are anabolism and catabolism. Anabolism consists of building up carbohydrates, proteins, fats and nucleic acids from simple molecules, through the use of energy. Anabolism is responsible for processes such as growth, repair, and reproduction. On the other hand, catabolism is the process by which large complex molecules are broken down into smaller, simple molecules, with the release of energy. Metabolic processes are carried out by the cell organelles, each organelle has a distinct and crucial function. Every animal cell...
12 Pages(3000 words)Report

American Airlines: Supply Chain Nightmare

For this reason, it is necessary that all business sectors are carefully reviewed – as often as possible – for the appropriateness of their structure and their daily needs; managers may fail to evaluate with accuracy their firm’s needs, a fact that can cause the failure of plans applied on the relevant organization (Hardless, 2005). On the other hand, the needs of various organizational departments are different; the methods used for the improvement of a firm’s activities should be flexible taking into consideration the characteristics of the specific organizational sector, its strengths/ weaknesses but also its role in the development of the firm’s activities. Boeing is a firm with a long presence in...
15 Pages(3750 words)Case Study

The Issues of HRM Consultancy of Carisma

The first and foremost task of creating a winning team is to lay a strong foundation that has a framework that is common to all the members of the team since different members of a team have different aims or goals. A team has to go through four phases before it can become a cohesive whole. These phases are forming, storming, norming and performing, and it is through a proper progression through these stages, that the team will be able to achieve its goals. Then the team has to find its “pulse” which shows how well their decisions and interactions are working. (Hronek, Ginny, n. d)

When the team has been created, it needs to be injected or infused with team spirit. First and foremost make it clear that teamw...
8 Pages(2000 words)Assignment

Company Law Issues

Various sections of the CA are coming into force over a staged process and the relevant provision relating to authority is sections 39 and 40, which came into force on 1 October 2007.

Section 39(1) of the CA provides that “the validity of any act done by a company shall not be called into question on the ground of lack of capacity by reason of anything in the company’s constitution”

Additionally, section 40(1) provides that: “In favor of a person dealing with a company in good faith, the power of the board of directors to bind the company, or authorize others to do so, shall be deemed to be free of any limitation under the company’s constitution”.

Section 40 (2)...
9 Pages(2250 words)Case Study

Traditional Theories of Leadership

They now focus more on doing things whilst thinking about the times that will follow; building upon their strengths and aiming to address the grey areas. The eventual emphasis within the modern theories of leadership has been centered on the premise of bringing about a change that remains abreast of the times that will come ahead (Lynch, 2006). Changing the dynamic mindset of the organizational processes and behaviors is a significant undertaking and this has rightly been pointed out by these modern theories under the leadership tenet. The visionary role of leadership has made things easier, focused on the long term actions and sought clarification from the goal setting and objectives’ regimes (Zaleznik, 1989). The new theor...
6 Pages(1500 words)Assignment

Relationship between Money Supply and Inflation in Saudi Arabia

Over the recent past, the effects of money supply, debt and inflation have become contentious issues for debate. Furthermore, frequent cautions concerning the risk of very large budgetary deficits aver that this would send up the upcoming state debt and capital rate as indicated by the rates (interests). As a nation, Saudi Arabia has a bi and enduring budgetary deficit over the past two decades and the government has been forced to go into the market so as to have loan access and to make up for the deficits. Given the impact of this on inflation and other economic variables, it's imperative and of great alarm for strategy architects (strategists) to understand how microeconomics has an effect on money supply, financial plan defici...
10 Pages(2500 words)Speech or Presentation

Important Issues of Community Life

Community life has its advantages but also has its limitations to the members and the outsiders.
“The good things we secure for ourselves are uncertain and precious until it is secured for everyone and incorporated into our common life.”-Jane Addams. With society moving faster and more detached to technology, busy schedules, and job changes, it becomes harder and harder to feel a sense of community. This can result in a life of solitude and a lose a sense of belonging. Community life helps extract people out of this solitude life and introduce better, challenging and fun tasks such as participation in acts of kindness. It also provides room for volunteering, meeting neighbors, discussing important issues with othe...
7 Pages(1750 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Supply & demand & elasticity issues. Theories of the firm. Macroeconomic issues for FREE!

Contact Us