Extra Credit Essay 1 - much trees in order to produce more...

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Valerie Bodden (10-0014), Maria Gabriella Liriano (09-0881) Microeconomics Professor Lagares Extra Credit Essay October 6, 2010 Global Warming and Microeconomics Global warming is known to be the gradual increase of the earth’s overall temperature. It has been a very important issue in the past couple of years throughout the world. Global warming is known to caused by many different reasons, but in relation to microeconomics, there are some notable consequences if one thinks about a firm’s production, its output capacity and finally the consumer preference and demand. The main production factor a firm uses to produce goods and services are: labor, capital, natural resources and entrepreneurial ability. If a firm uses too much of a natural resource, including land, the firm would be abusing this resource and contributing to global warming. For example, let’s say a paper producing company decides to cut too
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Unformatted text preview: much trees in order to produce more paper to satiate the demand, this eventually leads to deforestation, which is a cause of global warming. If a firm as well exceeds its output capacity then it would be forcing itself into producing more than it usually does or can, therefore probably creating more pollution; not solely while creating the product, but as well as when it is distributed. Although costumers have preferences in most products, and they demand more of these type of products, companies should always keep in mind the boundary set for when it is too much for nature to bare, and try no to cross it. We live in a greedy world and firms will always try to out-win one another, but one has to take into consideration the future of the planet and try instead of producing ore global warming, try our best to find alternative, eco-friendly ways of doing things....
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This note was uploaded on 08/09/2011 for the course ECONOMICS --- taught by Professor --- during the Spring '11 term at Universidad Iberoamericana.

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Extra Credit Essay 1 - much trees in order to produce more...

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