Unit 3 Principles Of Microeconomics
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…
This government seems to want to take back control. It was stated that, ‘The single market is an idea that Britain originally pushed for—a trading area where the regulations are harmonized so that goods and services can be traded on an interchangeable basis.’ Without such market, there’s a threat of trade restrictions. In order for this market to be effective, common rules must be set; and the imposition of those rules seems to be something that the British voters will be insurgent. A further rival is between access and membership. Take for instance, in North Korea and other places like that, everyone has entry to the single market which makes it easier for those companies to market their …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.
Economist, T. (2016). Buttonwood’s notebook. Retrieved November 16, 2016, from http://www.economist.com/blogs/buttonwood/2016/11/tradeoffs?zid=295&ah=0bca374e65f2354d553956ea65f756e0
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