Eco 365 Week 4 Reflection Paper

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o ECO/365 Principles of Microeconomics Learning Team Weekly Reflection There were many objectives in week four that related to each of the team member’s personal experiences within our field. Analyzing the effects of externalities on market outcomes and the differences between horizontal, vertical, and conglomerate mergers has allowed us to understand how the market really works and how we and our employers fit into the grand scheme of things. This week, it was also important using critical thinking to analyze what the government actually does and whom it impacts when they decide to intervene in certain areas. 4.1 Analyze the effect of externalities on market outcomes. In understanding externalities, the team was able to understand the positive and negative impacts associated with externalities. Theses impacts are factors that are a result of agreements by two parties without consideration of the effects of a third party. The book used a good example in referencing the positive impact of furthering one’s education and the environmental impact pollution has on…show more content…
Minimum wages was one of the topics discussed that had many influences toward product pricing of businesses. It is important to understand these concepts and understand the political decisions that may influence the strengths of companies whether they are massive or small. Understanding the negative impacts and comparisons between companies can also help individuals understand the weaknesses that may cause failure to the growth and structure. Some of the factors given in the material for this week have proven severe consequences to past businesses. These factors are very “eye-opening” when discussing the factors that could cause businesses to be put out of business or lose substantial returns on the

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