Wacky Widget Factory Case Study
Events
The Wacky Widget Factory, a firm, decides to produce 5,000 gadgets instead of 10,000 widgets. This is a microeconomic issue because it deals with an individual firm. The opportunity cost would be 10,000 widgets. Individual firm would be effected.
The U.S. government reduces funding for the Environmental Protection Agency, an agency in charge of regulating and monitoring the level of all pollution in the U.S., by $250 billion to reduce taxes on the wealthiest Americans. This is a macroeconomic issue because it deals with all industries and all pollution. The opportunity cost would be less production and less regulating within the EPA. Society would be effected.
A state reduces taxes on large businesses that move their production
The Wacky Widget Factory, a firm, decides to produce 5,000 gadgets instead of 10,000 widgets. This is a microeconomic issue because it deals with an individual firm. The opportunity cost would be 10,000 widgets. Individual firm would be effected.
The U.S. government reduces funding for the Environmental Protection Agency, an agency in charge of regulating and monitoring the level of all pollution in the U.S., by $250 billion to reduce taxes on the wealthiest Americans. This is a macroeconomic issue because it deals with all industries and all pollution. The opportunity cost would be less production and less regulating within the EPA. Society would be effected.
A state reduces taxes on large businesses that move their production