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Economic Principles and Their Applications in The Real World Discussion

Economic Principles and Their Applications in The Real World Discussion


Economic Summary: Technology Software Services Industry Analysis

A broad range of software goods and services are produced by the technology software services sector, a dynamic industry that serves the requirements of both consumers and businesses. The sector, a subset of the more significant information technology (IT) field, is crucial to modern economies because it fosters innovation and increases productivity and digital transformation.

SaaS, or Software as a service, is the chosen industry.

Services and Products Produced: The Technology Software Services industry’s Software as a Service (SaaS) subsector offers clients subscription-based cloud-based software solutions. SaaS offers apps via the Internet instead of conventional software installations, allowing users to access them from various devices. Customer relationship management (CRM), enterprise resource planning (ERP), project management, communication tools, and other applications are all included in this subsector.

Market Structure and Characteristics: The SaaS sector displays oligopoly market structure traits. Oligopoly is characterized by a few dominant companies that control a sizable portion of the market. Major firms in the SaaS sector, including Salesforce, Microsoft, and Adobe, hold significant market share. The concentration of power among a small number of significant enterprises results from entrance barriers, including expensive initial investments and network effects.

Microeconomic Relationships and Market Results: The demand for software services and their quality are directly correlated in the SaaS sector. Demand for companies’ products rises when they provide more excellent user experience, security, and usefulness. Additionally, recurrent revenue streams created by subscription-based pricing structures encourage client loyalty. High-quality Software generates a positive feedback loop for businesses by attracting additional users and keeping current ones.

Government Involvement’s Effect on the Market: Government involvement considerably impacts the SaaS market’s prices, output, and structure. SaaS companies’ handling of user data is impacted by laws governing data security and privacy, such as the General Data Protection Regulation (GDPR) in the European Union. Enforcement of antitrust laws may also be necessary to stop dominant players from engaging in anti-competitive or monopolistic activities. Government regulations may affect how software services are taxed, raising expenses for businesses and end users.

In conclusion, the Software as a Service (SaaS) subsector of the technological software services business, in particular, significantly contributes to innovation and economic growth. Its oligopolistic market structure, characterized by a few dominant businesses, offers benefits and difficulties. The microeconomic linkages between demand and software quality and dynamism in the market. Market outcomes are shaped, and fair competition is ensured by government action through regulations, antitrust laws, and tax policies. As the digital world changes, the SaaS sector stays at the forefront of technological development and economic transformation.

(References) [Insert your citations or references here.]

Economic Principles and Their Applications in The Real World Discussion



Explain economic principles and their applications in the real world.

Summarize the different types of market structures and the role of government in economics.

In the workplace, we are often asked to create “briefs.” A brief provides a snapshot, or short, written summary, of a situation or event that has occurred. It is generally just a few pages long and may include additional visuals like a graph, chart, or table. In this assignment, write a brief about economic concepts in an industry that interests you.

An example economic brief, template, and resources are provided below.

Example Economic Brief, Assignment 1 Template, Strayer Writing Standards (SWS)

3.Review an example brief.

4.Use the optional template to help you get started.

5.Get familiar with the Strayer Writing Standards (SWS). (See Instructions below.)

Industry Selection

Use this resource to select an industry and learn about the products and services it provides:

oNAICS (North American Industry Classification System)

Select the number next to the industry to see its subsectors, e.g., select 52 to see Finance and Insurance.

Select that same number again to read about the industry as a whole or select a sub-category. For example, Mining is 21, and Oil and Gas Extraction, a sub-category, is 211.


Review your previous chapter readings and use the resource above to develop an economic brief that is two to three (2-3) pages long in which you:

7.Select an industry and describe the goods and/or services this industry produces. Use the NAICS resource above to help you select an industry (and/or subsector) for your brief.

8.Identify this industry’s market structure and at least two or more market characteristics that support this market structure. (Market structures are covered in Weeks 3 and 4.)

9.Describe any notable microeconomic relationships, market outcomes, and/or trends in this industry. Include a graph, chart, or table containing related data. (Microeconomic relationships and market outcomes are covered in Weeks 2 through 4.)

10.How might government impact this industry’s market prices, output, and/or market structure? (Government intervention through price controls, industry regulations, and antitrust enforcement is covered in Weeks 2 and 4.)

11.This course requires use of Strayer Writing Standards (SWS). The format is different compared to other Strayer University courses. Please take a moment to review the SWS documentation for details. (Note: You’ll be prompted to enter your Blackboard login credentials to view these standards.)

Your brief should include a cover page.

Your brief should be two to three (2-3) pages in length (not including the cover page), double-spaced, 12-point font.

Your brief should include a minimum of one (1) reference/citation in the text.

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