Economics Theories Applied In Nestle Company

Well economics is a vast subject which can be applied anywhere and anytime most industries and companies apply there economic theories at various stages in the company's life cycle.Some form of economic theory or principal is applied . Let us drive in some of economic principle that are applied in the company. We are applying economic theories in Nestle Company.

Law of supply : This state that the fundamental economics concept in this is it increase in price rate results increase in quantity supply . This is direct relationship between price and quantity.

Incentives: when Nestle chocolate provide 10% extra which is an incentive ,the sale increase.

Opportunity cost: i did not use other companies product I use the product . I like Cadbury and Nestle chocolate both but I used Nestle rather than Cadbury . I like the taste of Nestle more than Cadbury.

Taste and preference :  Taste and preference of consumer demand for commodity depends upon the taste and preference of a consumer . I like the product and taste of Nestle rather than other products according to their . That's why I used Nestle product according to their taste and preference.

Economies of scale:  when more units of a good or a service can be produced on a large scale . Yet with fewer input cost , economies of scale are said to achieved , Alternatively this means that as company grows and production units of a company will have a better chance to decrease it's cost . According to this theory economic growth may be achieved when economies of scale realised.