For studying: Price-Demand, Income, Cost and Benefit, behavior. Given a product in a defined market for such company or business unit.Description of the software Theory where this model is based on
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Abstract
The idea of this model is to understand the behavior of the variables related with a micro-economy, a company trading products and or services. For doing so, these variables are turned into mathematic equations that show us an instant moment (momentum) displaying a graphic based on those equations. The idea is to see a big picture of how price, income, cost and benefit, are affected by the quantity of units of product that such market will be able to consume, related with the capacity of such company to produce that amount of product units.
What we are looking to know is: How many units and at what price?, a company must sell / produce a good or service in order to achieve their goals based on a marketing strategy. Generally a company wants to get the "maximum income" or "maximum benefit", or "minimum marginal cost" in order to improve their productivity. All these different points are shown in the graphic, and they are located into an specific position determined by the circumstances that are represented by the functions. This model can be useful to teach and learn how a micro-economy works. Once we understand what each equation represents then we only need to change a few numbers to see what happen if. Bellow is the theory where this model is based on. I hope you to enjoy this program, any comments and suggestions are always appreciated.
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