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Sun in Pisces 18.02.2018 (18:17 CET) - 20.03.2018 (17:15 CET):"Zbabělost je, když víme co máme dělat, a neděláme to."

Sun in Pisces 18.02.2018 (18:17 CET) - 20.03.2018 (17:15 CET)


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Sun in Pisces 18.02.2018 (18:17 CET) - 20.03.2018 (17:15 CET)


In economics, the firm designates a market entity that specializes in converting resources into assets. For its operation, the company purchases factor services, organizes its conversion to output (goods) and sells it. With regard to the economic concept, it is quite commonplace the concept of a company to be confused with the concept of a business company.

Company Objectives

In classical theory, the goal is to maximize profits as a basic goal. It is necessary to distinguish between the profits of the accountant (profit = income - explicit costs) and the economic profit (profit = income - (explicit costs + cost of opportunity)). An alternative business goal may be not to maximize instant profit, but to maximize the current value of future profits. Other business goals include:

1. Long-term survive in the market.

2. Achieving a certain market share (but it also relates to the achievement of a certain profit).

3. Maximize turnover.

4. Growth and expansion.

5. Achieving a certain market value and subsequent sales of the company.


By SilverStar at English Wikipedia, CC BY 2.5, Link

Microeconomics is the subject of economic theory, which deals with the decision making of individual market entities - individuals / households, companies and the state. Microeconomics deals with demand and supply in their individual and concrete forms, while macroeconomics deals with aggregate supply and aggregate demand, complex markets.


1. Individuals (households) demand a product of the economy in the goods market and offer services of factor factors (labor and capital) in the factor market.

2. On the contrary, companies, on the basis of the demand of individuals, offer a product for whose production factories demand services.

3. The State creates standards for the functioning of the economic system.

Consumer choice

Consumer choice is part of a microeconomic theory that examines how the consumer decides to place his limited retirement between different goods.

This theory, like other economic theories, is based on the premise of a rationally acting subject. Consumers try to maximize their benefits on the basis of their preferences. Indifferential analysis is used to illustrate preferences.

Efforts to maximize benefit are limited by the disposable income available to the consumer. This limitation is expressed in the budget line.

The optimum consumer in a simplified model where the consumer chooses between two desired goods is then at the tangent line of the budget and the indifference curve (the limit of substitution in consumption is equal to the marginal substitution rate in the shift).

If the consumer prefers a single farm (eg X) and his relative price does not match, the consumer will only buy this property. Then the optimum will not be on the tangent line of the budget and the indifference curve, but at the intersection of the budget line with the axis that represents the quantity of the preferred farm (in our case the x-axis). This situation is called a corner solution.

Concepts Considered in Consumer choice:

1. Preference

2. Benefit

3. Optimum consumer

4. Surplus consumer

5. Desirable, undesirable and indifferent goods

6. Normal - necessary or luxury - and inferior goods

7. Substitutes, complements


DNA orbit animated.gif
DNA orbit animated“ von Zephyris aus der englischsprachigen Wikipedia. Lizenziert unter CC BY-SA 3.0 über Wikimedia Commons.

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