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Microeconomics: Cost Analysis - Article Example

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Author outlines that though the overall output is decreasing in mining industry due to different factors however, the decline in the…
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Microeconomics: Cost Analysis

Download file to see previous pages... This is despite the fact that firms will be spending more money in future to explore new mines but the same may not have a kind of impact required to bring the market in equilibrium.1
My personal opinion about this article is really balanced due to the fact that author has been able to highlight as to how the distortions in market equilibrium can actually cause the prices to fluctuate. I believe that the author has been successful in highlighting as to how the supply and demand dynamics in mining industry work and what needs to be done in order to improve the overall situation in the industry.
This article relates to the concepts of microeconomic cost analysis by highlighting that the changes in the demand and supply dynamics can change the prices in different manner. Further, increase in variable cost of operating new mines have been shown as one of the key reasons as to why the overall supply is lower despite higher demand from countries like ...Download file to see next pagesRead More
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