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Choose one microeconomic concept applied in your final project of the general motors company. Explain your...

  • Choose one microeconomic concept applied in your final project of the general motors company. Explain your findings and the implications to your chosen firm's sustainability.
  • Using the same microeconomic concept chosen above, explain how it would be applied to the firm where you work or the type of firm you hope to work for in the future. What does this imply about this firm's future?
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Answer #1

Demand, supply and equilibrium is one of the key microeconomic concept wherein firms try to maximize the sales. General motors also followed the same concept when it started facing competition from players and gauging the decrease in demand, decreased the supply of its products. This led to optimal usage of the resources available and thereby helped the firm sustain margins and reduce wastage.

In the same way, financial services companies gauge the demand and supply level. If the demand for its products is not high because of financial markets not performing and giving stable returns, the supply of its services will reduce as not many people will find it lucrative to work for this industry. The firm might have to sustain in such environment and not invest and expand exponentially in the future as the demand for its products is low.

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