Meaning, scope, need & significance of the study of industrial economic?
Answers
Answer:
When analysing decision making at the levels of the individual firm and industry, Industrial Economics helps us understand such issues as:
the levels at which capacity, output, and prices are set;
the extent that products are differentiated from each other;
how much firms invest in research and development (R&D)
how and why firms advertise
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.
There is also an international dimension – firms have the option to source inputs (or outsource production) overseas. As such, while industrial economics more frequently uses skills and knowledge from micro courses, macroeconomic concepts are sometimes employed