Economics & Marketing

Economics provides business professionals and government policymakers with tools they use to analyze the market and make decisions regarding the direction of the economy. On a macroeconomic level, government decision makers may determine that they need to put more money into the economy, perhaps because they feel that the economy is growing too slowly. If this is the case, as it was during the 1930s, government programs might be put into place in order to provide jobs and income for businesses and individuals. This increases the tax revenue stream and boosts the economy.

On a microeconomic level, companies analyze the supply and demand for their goods and services in order to determine how much to produce and what price to charge. Supply and demand are macroeconomic tools which seek to maximize profits to companies while maintaining a high level of consumer satisfaction by preventing shortages.

Of course, macroeconomic decisions have an effect on microeconomic factors; the reverse is also true. If the government raises taxes, that reduces the amount that businesses (and individuals) can spend on other items. This, in turn, affects the supply and demand curves for some goods and can affect the overall well-being of the economy.

Economics thus affects the most fundamental aspect of our daily existence by influencing the types of goods and services that are produced and the amount that is paid to receive those goods and servic

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h nondifferentiated goods (as in the steel industry). Given the political climate and a tendency to favor competition, it is likely that the number of monopolies will continue to decrease. 1c) Industry concentration ratios have an effect on price in that the more companies in a particular industry (the higher the concentration), the less price elasticity within that industry. This is because consumers (assuming that information is readily available) are able to compare prices across the industry and have a number of substitute items from which to choose if any one company's prices become excessive. Similarly, if there are only a few companies in a given industry, consumers have fewer choices and thus may be forced to accept higher prices from those companies (although this may present opportunity to other companies seeking to enter the market). Industry concentration ratios can also affect pricing because it is easier for price collusion to take place with a small number of companies in a particular industry. While such collusion is illegal in the United States, in today's global economy, this collusion may be used effectively to prevent American business (or other foreign companies) from entering a particular overseas marke
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Some common words found in the essay are:
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Approximate Word count = 1975
Approximate Pages = 8 (250 words per page)

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