Essay on Economics And The World Of Business

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There has always been a relationship between the factors of economics and the world of business. Economics is a crucial study to know at first hand when the interest of running a business sparks, but many have asked, what is the relationship between the two and why is it so important? The importance of economics in the business world is a necessity because without knowing the odds of making decisions, the stakes are extremely high and after spending my time studying the factors of microeconomics, I believe I understand why this would be important for an entrepreneurship and I will discuss a few of the factors that our found in the study of microeconomics that would be important to know when starting a business.
Firstly, the reason for microeconomics being so important in business is the decision making process that deals with a variety of choices to choose from financial wise that relies upon the data that is drawn through the use of microeconomic factors. In order to fully understand this, you would have to understand some of the factors of microeconomics. One of the factors to take into consideration when studying microeconomics is knowing what competition you’re getting yourself in when it comes to the market. The market is huge so you have to know what your competition is doing and figure out a way to compete with them that will not cause you to lose out in the end which I will later discuss and lastly, you have to understand factors of demand and supply.
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