University of the People
BUS 1103
Unit 1: Principles of Microeconomics
By Camille Telesford
In this paper I will discuss the difference between microeconomics and macroeconomics along with their phenomenon examples, a summary of an article and why it is interesting, an example of sunk cost and how it differs from a marginal cost and finally an explanation of marginal analysis in my problem solving.
According to the Principles of economics textbook, Microeconomics is concerned with the study of the market system on a small scale. It looks at the individual markets that make up the market system and is concerned with the choices made by small economic units such as individual consumers, firms or government agencies. On the other hand, macroeconomics …show more content…
Marginal analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. For example, while making a cake for a birthday party it is assumed that one small cake was able to feed ten persons but if an extra bag of flour is added then ten more persons can be fed. The marginal analysis here is to see whether or not it make sense to add more flour to make a large cake or just make two small cakes.
Reference
Economist, T. (2016). Buttonwood’s notebook. Retrieved November 16, 2016, from http://www.economist.com/blogs/buttonwood/2016/11/tradeoffs?zid=295&ah=0bca374e65f2354d553956ea65f756e0
University of the people: Log in to the site. (2015). Retrieved November 16, 2016, from
BUS 1103
Unit 1: Principles of Microeconomics
By Camille Telesford
In this paper I will discuss the difference between microeconomics and macroeconomics along with their phenomenon examples, a summary of an article and why it is interesting, an example of sunk cost and how it differs from a marginal cost and finally an explanation of marginal analysis in my problem solving.
According to the Principles of economics textbook, Microeconomics is concerned with the study of the market system on a small scale. It looks at the individual markets that make up the market system and is concerned with the choices made by small economic units such as individual consumers, firms or government agencies. On the other hand, macroeconomics …show more content…
Marginal analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. For example, while making a cake for a birthday party it is assumed that one small cake was able to feed ten persons but if an extra bag of flour is added then ten more persons can be fed. The marginal analysis here is to see whether or not it make sense to add more flour to make a large cake or just make two small cakes.
Reference
Economist, T. (2016). Buttonwood’s notebook. Retrieved November 16, 2016, from http://www.economist.com/blogs/buttonwood/2016/11/tradeoffs?zid=295&ah=0bca374e65f2354d553956ea65f756e0
University of the people: Log in to the site. (2015). Retrieved November 16, 2016, from