Importance of business economics

Answer 1

Business economics is an extremely important matter. And should be of high concern for people in both large and small firms. The discipline allows you to better understand markets and potentially theorize a manipulation formula to better profits in said firm. While it can increase profits in the firm it should not be distinguished as the only method of production. As there are many different subjects which do need to be focused on as well as business economics. Business Economics would allow individuals to spot economic bubbles as well and make the needed changes in their own firm. For example the housing market crash of 2008 was the cause of an economic bubble which was not due to any one individual or corporation, but was the consequences of what sometimes happens in the market. The same type of even happened with Dutch tulips centuries ago. Which believe it or not traded for what would be millions of dollars today. Although, it is hard to grasp that an individual would pay for such a thing. Eventually, people caught on and tulips as well as rich individuals and people saw their incomes drop. If a person were to spot this in their investment and know this factor in business economics they could separate themselves from the bubble and failure. Maybe not entirely as the market could somehow reflect on them, but not enough to loose all income, and become extremely broke.