Basic Concepts Of Microeconomics

Basic Concepts Of Microeconomics


The basic concept of the micro economic theory are actually what you experience everyday. Both in household consumption/individual and household production/company where you work. This concept consists of only three, including the theory of production, pricing and distribution.

  1. Theory of Production = > exist because the goods and services produced in advance. On its production requires inputs the resources needed for it generated. The theory of this production is no other understanding of the theories of production related to the quantity and factors of production such as labor, raw materials, production costs, and so on.
  2. The theory of price = price is the determining value > a goods or services. In addition, the price is closely related to the interaction between demand (demand) and supply (supply). So, the determination of the price of an item or service is affected by the level of consumer demand and supply by manufacturers against goods or services. Prices are fluctuating, this theory applies the law of supply and demand.
  3. The theory of the distribution of freight Production > = can not be done without the distribution of raw materials. Deployment of capital for distribution, as well as for the wages of workers. In addition, the distribution also intended as part of marketing activities (marketing) or distribution of goods or services from the manufacturer to the consumer. In this process shows up the distribution chain that involves the role of distributors, wholesalers, and retail also includes resellers and dropshiper.

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