Answer to Question #287923 in Microeconomics for celin

Question

micro economic in relation to the construction industry.

Answer 1

Microeconomics deals with how individuals and firms make decisions and interact in the market. On the other hand, the construction industry is concerned with the establishment of infrastructure buildings, and industrial facilities. The construction industry is related to microeconomics in several ways. For instance, the construction industry can be classified under an oligopoly market since it is usually dominated by a few large firms. Also, the choices firms make regarding the type of products to produce fall under microeconomics. The construction industry is also impacted by the forces of demand and supply. For instance, if the cost of labor increases, then the construction activities will slow down or reduce. Furthermore, if the government enacts policies that are conducive to this industry, then we will expect the construction activities to increase.