ECONOMY & MANAGEMENT JOURNAL

Microeconomic knowledge (often also been written microeconomic) are branch of economics that study consumer and firm behavior and market price pricing and input factor amount, goods. Microeconomics analyzes how spontaneous sort and behavioral that regard offer and requisition on goods and service, one that will determine price; and how price, in turn, determining offer and goods requisition and succeeding service. Individual that do consumption combine or optimal production, jointly another individual at market, will form a scales deep balance macro; with that assumption all the things other regular with (ceteris paribus). Opposite of its microeconomics macro economy, one that work through economy activity as a whole, particularly hits economic growth, inflation, unemployment, a variety associate economics policy, and impact on medley commanding action (e.g. taxes zoom change) to that things. One of microeconomics aim is analyzing therewith mechanism market it’s that form relative pric

Economies of scale, in microeconomics, are the cost advantages that a business obtains due to expansion. They are factors that cause a producer’s average cost per unit to fall as scale is increased. Economies of scale is a long run concept and refers to reductions in unit cost as the size of a facility, or scale, increases. Diseconomies of scale are the opposite. Economies of scale may be utilized by any size firm expanding its scale of operation. The common ones are purchasing (bulk buying of materials through long-term contracts), managerial (increasing the specialization of managers), financial (obtaining lower-interest charges when borrowing from banks and having access to a greater range of financial instruments), and marketing (spreading the cost of advertising over a greater range of output in media markets). Each of these factors reduces the long run average costs (LRAC) of production by shifting the short-run average total cost (SRATC) curve down and to the right. Economies of