
Long questions with answers for this topic
Business economics is the application of economic principles and tools to solve business problems and support managerial decision making.
Scarcity means resources are limited, so not all wants can be satisfied at the same time.
Opportunity cost is the value of the next best alternative that is sacrificed when one option is chosen.
A firm maximizes profit when Marginal Revenue (MR) = Marginal Cost (MC).
Micro-oriented means business economics mainly studies the firm/industry level decisions like pricing, output, cost and competition.
It helps managers take better pricing and output decisions using demand, cost and competition analysis.
Nature/characteristics of business economics (any three):
Thus, it is a practical, decision-focused branch of economics.
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