30 Apr Question: Our week one discussion is primarily focused on two introductions: macroeconomicsand microeconomi…
Our week one discussion is primarily focused on two introductions: macroeconomicsand microeconomics.
Macroeconomics is focused on the overall level of economic changes, i.e., changes in unemployment and monetary changes (currency exchange rates). There are many macroeconomic events that greatly influence a manager’s decisions about production and pricing; yet many of these events are beyond the control of management. As such, for your first discussion assignment please complete the following task by Wednesdayand then respond to at least two of your classmates’ posting by Sunday:
- Select a macroeconomic event and explain why you believe that this event does influence management decisions and why it cannot be controlled by management.
Management decisions about demand, supply, production, pricing and market structure are all microeconomic options and choices. It is an analysis of consumer behavior (spending), production, and how pricing relates to demand. In microeconomics there are ongoing trends in both demand and supply that directly influence the price of a product. For the second part of this week’s discussion complete the following task by Friday and then respond to at least two of your classmates’ posting by Sunday:
- Select a specific industry and then identify and discuss a significant trend in supply or demand that directly influences management’s pricing decisions.
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