Why business students are taught microeconomics
Microeconomics goes under the radar, but there’s no doubting its importance, especially in the business world. One needs to understand how the global economy works because failure to do so can result in one having a lackluster career in a world that is very competitive.
Academic writing expert Lauren Bradshaw said “Microeconomics is a subject that falls under an economic course which teaches college and university students the basics they need to decipher graphs. This is a skill that is needed if one has aspirations to own their own business and come up with strategies for success”. With the help of an expert writer from CustomWritings, we will look at the reasons why many business students are taught microeconomics.
What exactly is microeconomics?
Since microeconomics falls under the economics umbrella, one has to know what economics is and at its core, it is the study of how nations, groups, and people manage and use their resources. Microeconomics looks closely at individual decisions while another aspect of economics called macroeconomics looks at the economy as a whole. Both microeconomics and macroeconomics use current conditions and trends to influence decisions that a business makes. They also help businesses predict how the market will behave both long term and short term.
Benefits of studying microeconomics
1. Microeconomics helps you improve your vocabulary
It doesn’t matter whether it is equilibrium (the price where supply and demand are equal), opportunity cost (what must be sacrificed to gain something else), or scarcity (low on resources), macroeconomics will teach you knew words and phrases used by professionals. Even if these are not words that you use daily, just studying this course will enable you to understand how they are applied in an organizational setting.
2. Any new terms you learn will be used in practice
Microeconomics isn’t all about introducing you to new fancy words, you will use these words when coming up with business strategies as well. Once you are familiar with all the fancy words used, you will be able to combine both theories and practice effectively. Theories such as SWOT analysis, Porter’s five forces models, Value chain analysis, and more will help you assess different situations and make the correct economic decisions based on the circumstances according to professional writing services.
3. Microeconomics help you understand people’s spending habits including your own
Economics is all about money, how businesses and the market behave however, there is also more and this is to do with value and spending habits. Take Willingness to Pay (WTP) for instance, this is the limit a person is willing to pay for a service or goods. Studying microeconomics helps you decode not only your spending habits but those of others as well enabling you to make sound economic decisions.
4. Studying microeconomics makes you understand all the nuances that are used in the economic sector
Many people have the wrong ideas about economics as a whole and think it’s all about relationships, models, and plenty of curves but that is not the case. Economics is much more nuanced than most people think and a lot of the theory side of microeconomics is heavily based on assumptions of how clients or consumers behave.
It is crucial for anyone studying this course to know what to do and how to react should certain assumptions fail. Educating yourself more on cognitive biases that affect people’s economic decision-making process prepares you with the right tools to predict how people in the real world behave whether they act irrationally or rationally.
5. Microeconomics teaches you how to leverage economic tools
Paper writing services always point out that learning the subject and all the theories is one thing, coming up with or developing tools to make proper business decisions is another story. Microeconomics is a subject that will train you in the basics and also give you the key tools you need to properly analyze the market. Take conjoint analysis, for example, this is a statistical approach that is used to measure customer demand for particular product features.
Using this tool will enable you to get to the complicated feature versus price trade-off that customers make daily. If you work for a massive company like Samsung for example and you want to know which feature to improve for the next phone like battery life, camera, or screen size, you will need conjoint analysis. This will let you what area of the next Samsung they want improvement in and this will save the organization money and time.
6. Microeconomics prepares you for graduate school
On top of helping your decision-making process both professionally and personally, microeconomics plays a key role if you intend to study for a business degree or become a writer for academic writing services found online. When you study this course, you will be equipped with knowledge as well as problem-solving skills needed for an MBA program. An MBA course will teach you a large variety of topics like marketing, management, economics, of course, accounting, law, and finance. With the basics of economics under your belt, you will be in a position to use theories effectively in practice.
7. Microeconomics improves your career prospects
Studying microeconomics makes you a very attractive employee to online writing services and various big organizations across the world. They will battle it out for your signature because they know you will bring problem-solving skills and analytical thinking which two traits that many people lack are.
According to many recent reports and articles produced by essay writers, problem-solving and analytical thinking will be the two most sought-after skills by 2025. You can gain them just by studying a course in microeconomics, plus you can find a job in a wide range of sectors like politics, banking, health care, insurance, and finance.
Final thoughts
Business students are taught microeconomics because it is a subject that teaches them some very important skills to better understands the business world. It is important to learn microeconomics together with macroeconomics because the business market can be very complex. Both microeconomics and macroeconomics allow students and even professional essay writers to develop strong problem-solving and analytical skills. These skills are needed if one wants to have a strong professional career, and it is a course for everyone, not just business students. If you are a business student and have a passion for the economical world, this is certainly a course that will help you know the ins and outs.
