Business economicsBusiness economics provides an analysis of the behaviour of privatefirms operating in different types ofIt builds on anumber of themes first considered inand, and covers concepts andissues which are frequently referred to as the theory of the firm.Market structures- There are several market structures in whichfirms can operate. The type of structure influences the firm’sbehaviour, whether it is, and the level ofit can generate. Theory of the firm distinguishes anumber of market structures, each with its own characteristics andassumptions.Businessmotives - not all people directly or indirectly involved in anhave the same goals or gain the same rewards. For example, entrepreneurs take business risks and expect afrom their entrepreneurial skill andeffort whereas managers, who are appointed by owners to makedecisions, are not primarily rewarded with profits.Profit- profit has a number of meanings in economics.At its most basic level, profit is the reward gained by risk takingentrepreneurs when theearned from selling a givenamount of output exceeds the totalof producing thatoutput. Thissimple statement is often expressed as the profit identity, whichstates that:Oligopolies - an oligopolistic market is ain which a few firmsdominate.
When a market is shared between a few firms, it is saidto be highly concentrated. Although only a few firms dominate, it ispossible that many small firms may also operate in the market. For example, majorairlines like(BA) andoperate their routeswith only a few close competitors.Pricediscrimination - price discrimination is the practice ofcharging a different price for the same good orservice. There are three of types of price discrimination –first-degree, second-degree, and third-degree price discrimination.Regulation- As Adam Smith noted in the late 18th Century,'. People of the same trade seldom meet together.without.theconversation ending in a conspiracy against the public, or in somecontrivance to raise prices.' (Wealth of Nations, 1776).
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This viewdominated Classical and Neo-theory for 150 years.Go to:Other stories.
For international economics, as the name suggests, you will learn about how countries interact and trade with each other. For instance, once you have studied this section of the course you will know about free trade, protectionism, exchange rates, the balance of payments, economic integration and, for HL students, the terms of trade. Introduction to economics 1. INTRODUCTION TO ECONOMICSChoices, Choices, Choices,. Part 1: The Basics 3. WHAT IS ECONOMICS???Economics – the study of how individualsand societies make decisions about waysto use scarce resources to fulfill wants andneeds.What does THAT mean?!!??!!