Final Project: Microeconomics

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Microeconomics Final Project Part 10 The different projects helped me learn important material throughout this course. Key materials and concepts I learned will benefit me in the future. Some of those concepts covered such as; the different economies and how they function, how supply and demand work and how one affects the other, how and why taxes are imposed, international trade, total utility and how it is calculated and how we can predict how a consumer might spend their money based off this, as well as fixed and variable inputs that help determine relationships between, for example, the amount of employees and goods produced as more employees are added and how the law of diminishing returns applies to this. There are different economies…show more content…
International trade can affect domestic producers in both a positive and negative way. In the positive sense, domestic producers can specialize in producing goods and may be able to produce with an absolute advantage or comparative advantage. Negatively, the country that is exporting goods to the U.S may have the advantage therefore selling the product for less in turn hurting the domestic producer. The domestic consumer benefits from international trade because they get the good for a better price unless a tariff or quota is imposed. If this is the case then less of that good is imported to the U.S. which keeps the prices higher which would negatively impact the domestic…show more content…
economy firms advertise to make already established goods and services seem more desirable and shift the demand curve to the right. Does the amount of spent on advertising by firms create benefits for consumers? The benefit I believe is the fact the consumer is aware the product exists. The true benefit is for the firms who are advertising, especially if they have a successful campaign. Should pharmaceutical companies be allowed to charge high prices for life saving drugs? The answer in my opinion is yes. If pharmaceutical companies are allowed to charge high prices, there is more of an incentive to research and develop life saving drugs. If the government was to take over research and development of drugs money is still a factor, however, it may take longer to get these life saving drugs on the market. The topics I feel that had the most educational value were all of the topics. I find not one is more important than the other and each topics builds off previous topic discussed. These topics discussed pertaining to microeconomics are critical to companies, firms, and consumers. Companies know how much output to produce based off of profits. Companies will know where they can maximize these profits. Also consumers spending can be predicted off what provides the greatest utility or satisfaction. Because of the laws of supply and demand, it is better understood when to produce or offer goods and services and when it is better to produce

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