Key Learnings from a Microeconomics Class for Mba Students

30. 11. 2012 c all in all learnings from Micro Economics module It was a very informative session and an center opener. I was under the impression that economics only deals with fiscal and m angiotensin-converting enzymetary policies. This was my setoff acquaintance with micro economics and it undetermined up a new perspective. I am in a arrange now to understand many events that give either day around me. I am able to have a broad idea about how these events may have a direct or indirect impact on me as an individual (professionally as well as personally) and to an organisation.Detailed below are a hardly a(prenominal) ( hardly not all) significant points that were new to me righteousness of Demand & Supply The measuring stick expected of a just falls when the monetary value rises and the make sense of money supplied of a good rises when the determine rises. value of a good adjusts to bring the quantity supplied and chooseed into balance. Other determinants of c onsumers demand include income, price of substitutes, expectations etc. Any change in these factors shifts the demand curve. Equilibrium A particular where securities industry price is at a level at which supply and demand quantity equals.Equilibrium of supply and demand maximizes the sum of consumer and producer surplus. Surplus A occurrence in which supply is greater than demand Consumers surplus Buyers willingness to pay for a good minus the amount the buyer really pays for it. It measures benefit buyers submits by participating in a market. Producers surplus The amount sellers ask round for their goods minus their be of cropion. It measures benefit sellers get from participating in a market. murdered Weight Loss The fall in total surplus that results from a market distortion. Marginal Utility Additional public-service corporation derived by consuming additional unit quantity of goods. Competitive markets Prices in a perfectly warring market continuously equal marginal cost of production. To maximize profit firms chooses output quantity such(prenominal) that marginal revenue equals marginal cost. A Monopolistically competitive market is characterized by attributes alike many firms, differentiated products and free entry. individually firm in a noncompetitiveally competitive market has excess capacity. There is timeworn deadweight loss of monopoly caused by the mark up of price over marginal cost.The product differentiation inherent in monopolistic competition leads to the use of advertising and home run names. Oligopoly is a market structure in which only a few sellers stomach similar or identical products. supra concepts also clarified how Marginal cost, drop cost, Average Cost, Variable cost and laid cost help in find out sustainability of doing business and how they help in arriving at decisions like maximize profit or continue to produce to cover costs. Concepts of monopolistic and perfect competition along with examples cove red in the class were apt for digesting the underlying principles.It also helped to understand how policy-making/governmental interferences balances or imbalances the market forces and thereof effecting the price and/or consumers and producers behaviour. Price secretion (PD) Important concept on types of price discrimination used by motley industries and businesses were interesting to know. I am a consumer of discriminated prices since birth however, never realized that I am a victim or beneficiary of the same. How business use it to their advantage. Concepts of types of PD and their application was an eye opener and gave me a new perspective to look at the market competition in a different way.Others Prisoners dilemma and Rivalry in Consumption, never perceive off but fun to understand. How externalities (positive or negative) influence producers. Tragedy of common and boundary movement were also unknown but not any longer. In finale I have been thru above every day of my life but was never able to understand it the way I am able to do it now. Biggest force of all to me was that the underlying theme of all these is Microeconomics. And, I thought Economics is one field and was unaware of micro and macro.