Thread: MJ - Did you ever use the concepts you learned in Economics?

Originally Posted by adiakritos

did you use concepts like price elasticity of demand or marginal utility?

Originally Posted by adiakritos

where you just focused on serving the market as best a possible and only used those concepts to explain things to other business people when you sold the company.

Neither. Your profits and revenue is a signal for demand.

so did you figure out when you reached unit elasticity of demand and how to stay there? I'd wonder if I'm priced right to maximize revenue. If I'm making sales then I know there's demand, but I also want to know at what price revenue stays the same if I lower or increase price by 1%.

I know this is 'money' chasing thinking and less market serving thinking. I'm guessing I'd focus on this once I've dominated the market?

I'm trying to figure out how these concepts fit into the real world.

Originally Posted by adiakritos

I know this is 'money' chasing thinking and less market serving thinking.

No it isn't. It's what a good business analyst would do. If dropping price by 10pct increases sales by 25pct; it be a good move.