ABSTRACT
Large scale production has accompanied technological change and the raising of the necessary capital has been facilitated by the issuing of shares to the public at large. Decision is the act of consciously choosing from among alternative courses of action and while one must always relate any decision to the action that ensues, conceptually the two can be separated for purposes of analysis. Systems are usually represented by flow charts in which the input, the process and the output are represented. Economics is customarily divided into macroeconomics and microeconomics and the ‘firm’ is decisively involved in both aspects. Microeconomics starts with an examination of resource allocation within a market or price system where a multitude of individual decisions shape the ultimate pattern. Decisions about product mix and marketing dictate the firm's long run possibilities and hence the type of decisions it can make in the future.
