Economics of Industries

Industrial Economics: Industrial economics is the study of companies, industries and markets. It looks at companies of all sizes, from local corner shops to multinational giants like Walmart or Tesco. And it takes into account a whole range of industries, such as power generation, car manufacturing and restaurants. Industrial economics consists of two broad components, called: (i) descriptive components and (ii) business strategy and decision making. The descriptive element relates to the information content of the subject. It relates to the industrial and commercial associations of nations. It provides information on availability of product components, natural resources and climate, competitive conditions in the industry, government rules and regulations, industrial policy, business policy, infrastructure, etc. So, he has a positive attitude towards what is happening. Economy rather than what should happen in imaginary or ideal conditions. The decision-making elements of business policy and industrial economics relate to analytical and decision- making areas such as plant location, market analysis, price, wages and production of goods, factory size, advertising, technique selection, product diversification, hiring and firing workers. All such decisions explain the behaviour of producers in different market conditions, which we study in industrial economics.