Economic theories and related management and business, and the market do not work in the main branch of the essential Microeconomics how to address the interaction between the various parts of the economy. Especially following the corners are concerned Microeconomics theories
1 Its theory
2 The theory of consumer behavior (demand)
3 The theory of cost of production and price theory (supply)
4 Theory of market structure and competition
This is the idea in the framework of the concept Affairs is involved in a wide range of theories. It is essential to treat individual elements approach (consumers, companies and workers) in the economy as a rational agent with the objectives as expressed in (the number of utilities and profits) is to be optimized in order to limit the number of certain subjects. This is a date approaches and practices are often criticized, but it is protected on three grounds. This expansion often overlooked in many aspects to consider for the first imperfect knowledge, risk and uncertainty, for example, information on the cost of the most versatile and easy transaction costs into account conditions multiperiod. At this point, positive values between economics and other needs to make a very important distinction. This is sometimes referred to as / ”s” discrimination, but this is actually somewhat misleading. Indeed, positive statements whose truth or falsehood can be verified by logic or empirical study are simply statements. Values statements involve a value judgment and can not verify the logic or empirical study. For example, compare the following two seemingly similar announcements.
1 UK income distribution inequality.
2 UK income distributions are inequitable.
A second model is the value of the first statement was a positive one. Values statements often a means to earn a recommendation, to be redistributed in the above example. For this reason, they often include words or your cover. However, not all such statements may enforce their actual values. For example, the statement, ” a positive statement ” in order to increase profitability Company X should increase its price. ” Here is a different sense of the word, by the law of value in the reason for all this, does not mean the country.” ” Should be an exceptional one.” In practice, sometimes their statement can be difficult to distinguish the two types, especially if any, are combined together in the same sentence. Management Economics what are the link between the above studies. Indeed, economists themselves often admit their scientific statements can only positive values. But the economics of a misleading impression; Values statements in this really helps. First, in terms of the use of market forces in order to achieve a more effective solution to reduce pollution, the government should consider include the following statement. This is a values statement may sound like, but it should be as described in the previous paragraph is really a word for the use of exceptions. Justice to any concept of the effective value and the wording is carefully since it does not specify to judge the effectiveness of a statement. Of course, above economists value the statements may occur, for example, can make positive statements. This statement, in the coming decade is now the world’s governments is intended to reduce pollution by 90% should be considered. This is the true values statement. Economists note that the cost of such a policy and the benefits will exceed costs and benefits estimated. This in itself is why space and time, both over the edge of the greatest of these costs and ignore the distribution policy, could not be determined. In principle, however, the nature, scope and methods 9. Both countries to reduce pollution by 90 percent and for the future generations will benefit overall policy is to show empirically rich and poor will be possible. This will not change their mind; a manufacturer’s announcement will lead to understanding. Their values are forced to revalue this reason they are related to other values in the light of economic analysis.