Microeconomics is still a jargon to me. I got to the library for 45 minutes (finally in the last 23 days at INSEAD) to study this. I gather that ....
Microeconomics -> price theory
- to study how individuals, households, firms make decisions to allocate limited resources - where goods are bought or sold.
- examines how these decisions determine supply and demand for goods and services
Supply and demand describe market relations between prospective buyer and seller for a good. The supply and demand model determines the PRICE and QUANTITY sold in the market ...makes sense to me.
Now, we visualize a competitive market where price of a product (or service) will function to equalize the quantity demanded by the buyers and the supply produced by the seller and bring the market to EQUILIBRIUM.
- Competitive market means that there is no Monopoly - which means that Microsoft has a strong competitor (I said we visualize ).
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2 comments:
Good visualization!
Have you ever did a case on why Novell couldn't compete with Microsoft despite the SUSE release? Is it because Eric left Novell? Is there nobody to provide a clear path to set a direction for Novell? you are an INSEAD graduate and why you didnot chose Novell as a challenge in your career?
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