Market Structures In AT & T: Macroeconomics

Market Structures in AT&T

Tamela Black

ECO/365

September 2, 2013
Joe Krupka

Market Structures in AT&T

Microeconomics is a branch of economics that studies the behavior of individual households and firms in making decisions on the allocation of limited resources. Typically, it applies to Markets where goods or services are bought and sold. Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which determine prices and how prices, in turn, determine the quantity supplied and quantity demanded of goods and services.(From Wikipedia, the free encyclopedia). Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and
decision making of an economy as a whole, rather than individual markets.(From the Wikipedia, the free encyclopedia). Some examples of Macroeconomics are unemployment rates, inflation, savings, investment, and international trade. From the simulation I have identified two Macroeconomic principles and concepts.
Two are the behaviors and decisions that affect the goods and services. The supply is increased and the demand decreases and these are based on behaviors and decisions. All of this plays a significant role in prices of goods and services. Another principle I learned, pertaining to Macroeconomics, is dealing with inflation and growth. Taxation levels can change the pricing levels of goods and services. Unemployment rates can cause a change in the economy also. For example: If there is a very high rate of unemployment then there is a decrease in consumption of goods and services. If people are out of work then they are not able to buy and consume services like a working person
would. I categorize these principles between microeconomics and macroeconomics differently because microeconomics deals more with the behavior of and decisions of the individual households and Macroeconomics deals more with the whole economic activity. The concept of Microeconomics deals with the individual. The decisions of the household are firm when it comes to determining the prices and quantity of goods and services. The concept of Macroeconomics helps me understand the factors that affect shifts in supply and demand on equilibrium price and quantity because there are buyer and sellers in the market. The concepts of Macroeconomist help me understand the factors that affect shifts in supply and demand on equilibrium prices and quantity because there are buyers and sellers in the market.
The factors affect are the overall growth of the world and people. The factors such as: The employment rates, general behavior of prices, total income earned level of employment of productivity, interest rates, and national productivity. These factors mentioned, are larger and have much more larger effect on supply and demand. A great example I found while researching was a statement saying “The microeconomist studied the behavior of the individual consumer choosing between chocolate and strawberries. The Macroeconomist is more interesting in measuring the overall level of consumption in all markets, including those for strawberries and chocolate. Understanding the overall consumption, how it is affected by other economic variables, and its effect on the economy as a whole are questions for the study of Macroeconomics. Macroeconomics nodds and their forecasts are used by both governments and large corporations to assist in the development and evaluation of economic policy and business strategy.”(from--www.boundless.com, Macroeconomics and Microeconomics). These factors affect supply and demand on the equilibrium price and quantity on the economy as a whole. These factors play a major role on the entire population, economic performance and the national economy. On the other hand ,
factors that affect the supply and demand on the equilibrium, price, and quantity, within the microeconomics are individual households and firms within the markets. For example:”The Microeconomist is interested in how the price of chocolate is determined in a local market, but is not as concerned with how that price factors into the overall level of prices on the economy.”(from—www.boundless.com). Microeconomist are concerned more with the individually of the consumer and firms and why the decisions are made and chosen. An example of one shift of the supply curve on shift of demand curve in the simulations is when the rent decreased, the number of apartments that became available increased. The vacancy rate also went down. The quantities of apartment’s demands were higher. People bought more apartments when the rent rate went down. Also another shift is if the prices go down the quantity will need to be increased in order to rent out to more people and to increase the revenue. What I have learned about supply and demand , from the simulation, that may apply to my workplace is that if I have many contracts offered to our company for work to be done on that site then I must supply the amount of security guards to cover each one of those contracts. In which there is a demand for work to be done, so I would have to supply the officers to do that requested work. But in my case, at our Security company, if our demand increases then our supply of guards must increase!

References: https://www.boundless.com/economics/methods-and-basis-economic-models/economic-as-science/macroeconomic-and-microeconomic en.wikipedia.org/wiki/microeconomics , The Free Encyclopedia, The Wikipedia.