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<!DOCTYPE html>
<html>
<head>
<title>Microeconomics</title>
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<div class="container mt-5">
<div class="card">
<div class="card-body">
<h1 class="card-title"><i class="fas fa-chart-line"></i> Microeconomics</h1>
<h2 class="card-subtitle mb-2 text-muted">Accounting Vs. Economic</h2>
<p class="card-text">Accounting Profit (AP) = Total Revenue (TR) - Explicit Cost (EC). AP = TR – EC. Economic Profit (EP) = Total Revenue (TR) - Total Cost (TC). EP = TR - TC or Economic Profit (EP) = Total Revenue (TR) - (Explicit Cost (EC) + Implicit Cost (IC)). EP = TR - (EC + IC). Accounting profit can never be < than economic profit for AP = TR – EC while EP = TR – (EC +IC).</p>
<p class="card-text">Microeconomics focuses on the actions of individuals and industries, like the dynamics between buyers and sellers, borrowers and lenders. It delves into concepts such as supply and demand, elasticity, and consumer behavior. Understanding microeconomics helps businesses make decisions about resource allocation, production methods, and price setting to maximize profit. Governments use microeconomic principles to create policies that improve economic welfare and manage market inefficiencies.</p>
<p class="card-text">One key aspect of microeconomics is understanding how consumers and producers respond to changes in market conditions. This can include shifts in technology, changes in consumer preferences, or fluctuations in the cost of inputs. For example, a rise in the cost of raw materials can lead to higher production costs, which may be passed on to consumers in the form of higher prices.</p>
<p id="rickroll" class="card-text" style="color: blue; text-decoration: underline; cursor: pointer;"><a href="https://www.docs.myenconomics.com/202348/Accounting-Vs-Economic.html">Click here to view full document.</a></p>
<p class="card-text">- OR -</p>
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<p class="card-text text-muted">(ɔ) Team TTe</p>
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