Question

Explain need and significance of industrial Economics.

Answer 1

Hey there!!!

Industrial economics plays a very crucial role in maintaining the GDP of a country. As the industry produces the good and services, it will increase the per capita income, GDP, services .

Answer 2

significance and need of industrial economics :

• Industrial Economics helps in understanding issues like - the levels at which the prices, capacity, and the output are set, the differentiation factor in between the products, the amount to be invested in research and development (R&D), and the need and capacity of advertising, apart from giving an insight about how the firm should organize their activities.
• Industrial Economics also gives insights into how firms organise their activities, as well as considering their motivation. In many micro courses, profit maximisation is taken as given, but many industrial economics courses examine alternative objectives, such as trying to grow market share.