RELEVANCE OF MICROECONOMICS PRESENTATION

This is a PowerPoint presentation regarding the relevance of microeconomics.

1. RELEVANCE OF MICROECONOMICS

2. WHAT'S THE RELEVANCE OF MICROECONOMICS TO BUSINESS

3. Business and economics go side by side, wherein, businesses offer products and services that generate economic output , for example, businesses sell goods and services to consumers, whereas, economics determine the supply and demand of such products in a particular economy.

4. To understand the operation of an economy To provide tools for economic policies To examine the condition of economic welfare Efficient utilization of resources Useful in international trade Useful in decision making ;  optimal resources allocation  Basis for prediction  Linear programming  Price determination

5.  Gives us knowledge of free enterprise economy  Helps in making decisions such as how much to produce, what to produce, for whom to produce etc  Explains the conditions of efficiency in both production and consumption

6.  Helps to ascertain the government policies on the resource allocation and pricing  It helps to impose tax rates by analyzing the demand and supply factors  Also helps to examine the implications and effectiveness of the government policies

7.  Helps to maximize the social welfare  Helps in formulation of economic policies which are meant for promoting economic welfare and efficiency in production

8.  Microeconomics is helpful in efficient management of available resources of a country  Micro economics is utilized to explain the gains from international trade , balance of payment disequilibrium and determination of foreign exchange rates  It helps to make the rational decisions to both producers and consumers in an economy  Micro economics provides the way of efficient utilization of available resources.

9.  Microeconomics helps to determine the gains from international trades by analyzing the relative elasticity of demand for each others products  Helps to determine the rate of foreign exchange by comparative study of demand and supply factors

10.  it helps business to achieve maximum production with the given amount of resources  Business firm can make decisions in demand analysis, cost analysis and methods of calculating prices

11.  The limited resources of firms can be optimumly utilized by choosing the best alternative which is possible with the help of microeconomics  Microeconomics also helps producers to select the highly efficient and least cost production technique.

12.  provides basis for predicting future course of events by analyzing the various factors such as demand and supply etc.

13.  It is useful in price determination, known as factor and product pricing.  Prices are determined on the basis of demand and supply forces which are the main part of microeconomics.

14. THANK YOU!!!