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

Micro - Assignment Example

Comments (0) Cite this document
Name Instructor Institutional affiliation Date Concept of scarcity and opportunity cost According to Mankiw economics is the learning of how individuals make decisions about the needs to purchase under the principle of scarcity (Mankiw, 2004, p.3). Resources available to satisfy individuals’ wants are limited such that individuals will have to choose between alternatives…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.5% of users find it useful
Read TextPreview

Extract of sample "Micro"

Download file to see previous pages According to Samuelson and Temin the opportunity cost of a choice is determined by the next best choice, and for many allocations, opportunity cost is measured by monetary value (Samuelson and Temin, 1976, p.20). Hubbard and Brien write that choices are costly thus the need for an alternative that will incorporate the scarce resources (Hubbard and Brien, 2006, p.8). Choices have both the implicit and explicit. Explicit costs are which monetary value is lost i.e. the sacrifice of the choice is paid out in monetary value. On the other hand, implicit costs are costs for which there is no monetary value in the choice made. The principal forfeit in this cost is time. According to Douglas the cost of production of any product is estimated in terms of what is foregone (Douglas, 1994, p.171). The concept of opportunity cost is best illustrated by production possibility frontiers. A PPF demonstrates the probable combination of two products e.g. let us consider a firm in UK producing computers and mobile phones. When it uses all its resources, it can produce 6.8 million computers and 50 million mobile phones. Computer (m) Mobile Phones (m) 84 0 80 1 70 3 60 5 50 6.8 40 8.2 35 8.8 20 10 5 11 Production Possibility Frontier Opportunity cost will lead to trade off in the choices of consumers and a comparative advantage in countries. A trade off entails a forfeit made to obtain a certain good. The output increases when countries specialize in the goods and services they have absolute advantage. For example let us consider UK and country B-producing motor cars and trucks. Maximum production Max Output U.K. Country B Cars 60 45 Truck 40 20 Employing all the resources U.K. can produce 60 million cars and 25 million trucks, while country B can produce 45 million cars and 20 million trucks. It is therefore right to say that U.K. has an absolute advantage in producing both goods, but it has comparative advantage in producing trucks since it is 2 times better at producing them than country B, whereas it is 1.3 times better in producing cars. The concept of opportunity comes in production of products by countries. Countries that produce goods using few resources at low opportunity cost have a high comparative advantage in producing those goods. However, comparative advantage ignores costs and assumes there are no diminishing returns (Hubbard, p.101). Effect of change in price of disposable hospital gowns in U.K Change in demand Price P=p* p=p1 DD 2 DD 1 output A decrease in the price of disposable hospital gown in the United Kingdom results to an increase in demand from DD 1 to DD 2. Supply remains the same in this case. Change in demand and supply due to change in market SS 1 p SS 2 P=p* DD 2 DD 1 Y1 Y2 Y3 Quantity A change in the price of hospital gowns will result to an increase in demand. An increase in demand results to more production as firms try to meet the increased demand. This result to change in the equilibrium price (McGraw-Hill, p.58). Market equilibrium shows the relationship between market demand and market supply. There is competitive and Nash equilibrium. Profit is the variation between revenue and costs. In economics profit denoted as П is the differentiation of marginal revenue and marginal cost i.e. П = TR-TC. High revenues translate to high profits if the production cost is low. Usually a company tries to maximize profits ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Micro Assignment Example | Topics and Well Written Essays - 1000 words”, n.d.)
Micro Assignment Example | Topics and Well Written Essays - 1000 words. Retrieved from
(Micro Assignment Example | Topics and Well Written Essays - 1000 Words)
Micro Assignment Example | Topics and Well Written Essays - 1000 Words.
“Micro Assignment Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Uncontrollable Factors in Macro and Micro Environment and their Impact On Shyamali Exporters Limited

.... Above assessment of the uncontrollable macro factors provides an insight in to the changing trends that will impact upon the company and these information should be incorporated in to the decision making process. Positive impacts should be capitalised upon while reacting to accommodate or counter the adverse effects of the macro environment. While taking a proactive stance to the changes in the environmental conditions is advisable, it should be born in mind that there is little that the companies can do to affect or change most of these macro environmental conditions which are uncontrollable (Armstrong & Kotler 2002). Micro Environmental Analysis A company’s microenvironment also contains uncontrollable elements though...
9 Pages(2250 words)Case Study

The Role of Micro-finance in Alleviating Poverty in the Region of Hunza

...Information: Information Name Village Sex Marital status People in Household Adults Children Total Education Level Source of Income Member of any Financial Institution No Financial Bank Microfinance Institution Other Business Activity Business Sector Micro Enterprise Agriculture Others Livestock Through these questionnaires I was able to derive the following information. 2.2 Occupations The main occupation of the people of this region is agriculture and small retail type businesses (mainly shops3). Young members of the population migrate to cities, where they work to provide their families in the region with supplemental incomes. 2.3 Needs of the People Based on my research, I believe that...
15 Pages(3750 words)Research Paper

To What Extent Is Business Model Innovation Relevant for Achieving Success in E-Commerce from a Micro-Economic Framework

...the Internet”. The driving force behind the Internet is to build a universal network where everybody can profit in one way or another. According to a neoclassical micro-economic perspective there should be a solution to this dilemma as the Adam Smith’s invisible hand in the market would level things up. According to evolutionary micro-economics, the market agents are not so rational as we would to expect. Bounded rationality plays a strong influence in the interacting game of all of the market’s agents1. The contributions of the Nobel Laureates in Economics such as Herbert A. Simon, Daniel Kahneman, and Amos Tversky have expanded a new horizon where Behavioural Economics stands as coherente...
38 Pages(9500 words)Research Paper

Commercial Law: Micro-Maker and Lacey

...developed along the following lines: Micro-Maker provide a demonstration model of each of its microwaves to the relevant Lacey store. Lacey does not pay for the demonstration models at this stage. Customers of Lacey who select Micro-Maker microwaves are given an approximate delivery date. Lacey then puts in an order to Micro-Maker together with a 10 per cent deposit on the value of the goods ordered and Micro-Maker sends microwaves to the relevant store via an independent carrier. Lacey pays the balance owing on each microwave on 60 days credit. Lacey delivers the microwave to the customer using its own van and driver. When a demonstration model has been in the shop...
7 Pages(1750 words)Assignment

Micro and Macro Carbon Audit

... partnered along with Carbon Trust to realize carbon and cost savings. A 25% reduction of CO2 by 2013 has been committed with financial savings of approximately £6.5 million. An investment of £900k over five years is expected to save 33675 tonnes of CO2. It has been approved to achieve zero carbon Edinburgh by 2050. 2.0 Micro Audit A micro audit has been conducted for estimation of CO2 emissions from the home, appliances, and travel. Calculators have been made available by the Government, Carbon Foot Print, and Energy Savings Trust. CO2 emissions for the home, appliances, and travel have been estimated. 2.1 Individual Footprint An individual footprint has been illustrated in table 1. Home, appliances, and travel are three sectors...
14 Pages(3500 words)Research Paper

Macro and Micro Environmental Factors in the Organization of Tesco

... and regulation. As in previous years, TESCO is fined for selling out of date food items which are strictly against the public health and safety law. Micro Environmental Analysis Micro environmental analysis would include factors that would affect the industry or sector in which an organization operates. Porter’s five forces techniques can be used to analyze the micro environment in which an organization operates. Porter’s Five Forces Model The immediate business environment of firms producing similar goods is called the industry. Micro environment considers factors which are within the industry. The Porter five forces model elaborates that industry attractiveness depends on five factors: Threat of New Entrants New entrants...
10 Pages(2500 words)Case Study

Macro and Micro Economic Environment of Australia

...of these factors experts have classified them into two separate categories – macro and micro. Number of researches have been carried out to understand the role of these factors in the decision making process regarding various business related issues. However, most of these studies fail to provide a proper understanding regarding the effects of these factors in the context of a particular country. This paper includes a proposal of a research that will be conducted in order to gain insight into the role of different micro as well as macro environmental factors that are likely to impact the businesses which are operating in Australia. This research proposal is consisted of the principle aims and objectives...
7 Pages(1750 words)Research Paper

Policy Task (Describe the process of developing a (micro-) healthy eating policy for a large mining company operating in rural and remote South Australia)

...Healthy Eating Policy for a Large Mining Company Operating In Rural and Remote South Australia) Background Information on the Health Status of South Australia Mining Industry A study conducted indicates that there are a number of factors present in the coal mining industry. They are risk factors known for the cause of coronary heart disease and cardiovascular disease and they are found in higher levels than the general population. Lifestyle factors are the known causes for these diseases; information available on lifestyle factors indicates the following as causes of heart disease and they include lack of exercise, stress, poor diet, smoking and alcohol abuse (Bofinger and Ham 2002, p49). According to the Australian Institute... Eating Policy ...
8 Pages(2000 words)Research Paper

Impact of the Micro Environmental Factors on McDonalds

... Environment The marketing environment constitutes of factors which influence the company in a direct and indirect way. The marketing environment can be divided into macro and micro environment. The macro environmental factor affects the company activities directly and the micro environmental factor affects the company activities indirectly. Micro environment factors and forces comprise suppliers, distributors, competitors etc. Macro environment comprise demographic, socio cultural, economic, physical, economic, political and legal actors and forces. There are various tools for determining the micro and macro environmental analysis which include PESTEL (Political, Economical, Social, Technological, Environmental and Legal) and Porter’s...
12 Pages(3000 words)Book Report/Review

Distribution Strategy for SME and Micro Food Businesses

...This reflective log will examine my personal experience that I have gained in carrying out the actual consultancy process. The report also seeks to synthesis between theory and practice as experienced during the consultancy project. Though I will constantly make reference to our consultancy report, I will specifically focus on my personal experience and reflection towards the actual process of conducting the research. As part of the consultancy group consisting of third year students at the University of Lincoln, we carried out a consultancy study titled: “Distribution strategy for SME and micro food businesses: Select Lincolnshire for Food (SLFF).” In this report, we specifically focused on critically analyzing the operations of SLFF...
8 Pages(2000 words)Essay
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 Assignment on topic Micro for FREE!

Contact Us