Every individual confronts economic issues daily. This is especially true of business owners, who spend their time thinking of economic issues such as how to handle changes in the price of goods, how to allocate their time, and whether to buy or produce goods in order to efficiently allocate their scarce resources.

In your initial post, begin by introducing yourself briefly, including your program of study and career interests. Then, address the following as part of your response:

  • Imagine you own your own business and have to make daily decisions about how to allocate available resources such as input of production, time, purchasing decisions, and so forth. What role do you think microeconomics has in running a business?
  • Which of the principles of economics outlined in your reading would you be more likely to apply when making business decisions? Provide at least two to three examples.

In your responses to your peers, comment on at least two posts that discuss a different economic principle than the one you chose. Draw connections between the different principles and the role of microeconomics in everyday life.

Peer 1

My name ,,,,,,,, I am currently enrolled for my bachelor’s degree in accounting and finance. I currently work as an accounts receivable/payable representative for Zippo/W.R Case/ Northern Lights. Someday I would love to own my own accounting firm and work as a financial advisor.

When owning a business microeconomics come into play for how the business is operated. For me wanting to own my own accounting firm I wouldn’t be selling items that are tangible, there is no production factors involved for producing a product to then sell. However, the cost of my education needed to fulfill the services I would be providing is a cost to myself and the company that I would have to factor into the cost of services. How much money did I spend on my education, how much time did I spend in school, and how much money did I miss out on in the process of obtaining my education? Along with the expenses it took me to open the firm, buying or leasing the building, furnishing the building, and hiring other accountants who would be also working with the clients the company brings in. Also starting as a new firm comes the risk of the time it takes to build the clientele to start making money in the first place. When making purchasing decisions again without having an actual tangible product the cost comes into play of what software’s will I be purchasing to handle the clients’ finances, and then the expenses of paper, pens, upgrades to computers, and so on that will be needed to supply the company. Another principal of microeconomics is that of incentives, how will I incentivize new clients into coming to my firm appose to another firm. How can I make my services be admirable to people?  Working in a position such as myself I have a specialized education in finance where I can work with my clients and offer them the security and safety of their investments because I have the knowledge of how to operate them. The incentive of knowing someone has the education standards to back up their business practice.

Peer 2

My name and I am originally from Central Florida, but I am now stationed in Georgia. I have been in the Airforce for 13 years and I am currently an aircraft mechanic. I am currently pursuing a degree in Business Administration with plans to start some kind of business of my own when it is time to retire from the Air Force. A business that I was interested in starting was to run fishing charters. I think that microeconomics can have many different roles when it comes to running a business like this. Some of the daily decisions that have to be made is how many boats are available for charters?, where to take the customers fishing to guarantee they catch something?, and what time of the day are different charters going to go out? All of these questions can have a major impact on how resources are allocated.

One of the principles of economics that I found interesting in my reading was the cost of something is what you give up to get it. I found this interesting because with anything you are going to give up your time in order to get something. This could relate to running a fishing charter because a lot of time goes into taking customers out on a fishing trip. The next principle that I found interesting was people respond to incentives. This can be important when it comes to a business like this because a lot of the business comes from tourists and people on vacation. If there is something that is going on in the world to slow these things down it could also hurt the business.