Micro Economics Is The Branch Of Economics That Analyzes The Market Behavior Of The Individual

1001 Words Mar 31st, 2016 5 Pages
Micro economics is the branch of economics that analyzes the market behavior of of the individual consumer or firm to understand the decision making of either a household or firm in economics. It is concerned with how the consumer and buyer interact and what facts might influence the buyer or seller. While micro economics is a broad study of field, their are many concepts within macro economics that are very important. The two concepts I will be defining in this paper is Long run and Short run in Micro economics. In economics, the short run and the long run are used for referencing different time approaches. Many other concepts such as supply, demand, etc. are also involved with the short and long run to analyze the changes from one time frame to another or from one of the variables to another. These concepts are also used to try and predict how a business might operate in the future, especially when a company is doing bad financially. This can very well help with firms being able to strategize better business plans, recover any losses, and to prevent bankruptcy. As stated before, the Short run and long run are two time periods that are used in the study of economics. The short run is a period of time where the quantity of at least one input is fixed and the quantities of the other inputs can be varied, while the long run is a period of time in which quantities of all inputs can be varied. For a short run, the time can range from anywhere from a couple weeks to a month…

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