What role do you think microeconomics has in running a business?

Every individual confronts economic issues daily. This is especially true of business owners, who spend their time thinking of economic issues such as how to handle changes in the price of goods, how to allocate their time, and whether to buy or produce goods in order to efficiently allocate their scarce resources.

  • Imagine you own your own business and have to make daily decisions about how to allocate available resources such as input of production, time, purchasing decisions, and so forth. What role do you think microeconomics has in running a business?
  • Which of the principles of economics outlined in your reading would you be more likely to apply when making business decisions? Provide at least two to three examples.
Open chat