The paper " Microeconomic Factors Which Affects the Prices of Play Stations" is a wonderful example of a case study on macro and microeconomics. Sony Company is the biggest worldwide company which deals with electronics, entertainment (Video and Audio), games, and financial services. However, it is the leading producer and distributor of electronics. With the advancing technology, it has produced Video game consoles play station developed through its computer entertainment and regularly modifies it to fit with the advancement of the technology. The essay will analyze the decisions of the company and its workers regarding the price of play stations focusing on demand and supply.
It will also look into the general views of the whole industry, nation, or world which contributes to the prices or the flow of the product. This will include information on the demand and supply of the product (Sony electronics, 2007). Microeconomic factors which affect the prices of play stationsMicroeconomic factors are those that Sony Company and its workers consider when setting up the prices of the products, these include government taxes and other regulations.
The wars of the prices of commodities are too common in today’ s market and especially in the video game industry as most of the companies are engaging in this type of business to meet the demands of most of the consumers in the recent market. This makes the demand high although the supply is very low may be due to the quality of the product or the high prices for the public to afford. Although the prices are considered to be the key determinant of the choice of buying a product Sony records the most output of play stations compared to the other companies.
Their prices are set in a way that they favor the capabilities of most of the consumers and favor the status of the company. First, they consider fixed costs like that of renting the building, cost of the raw materials and machinery, salaries of the workers, and other expenses like insurance. These costs remain irrespective of the conditions of the outputs or the supply of the products hence the prices of the commodity cannot go below the fixed costs.
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