D1. Respond to the response below:

Describe the microeconomic principles being used. What is driving the demand for data? What impact will regulations on the use of private data have on supply, and thus, firms?

The two critical microeconomic principles that stood out to me are scarcity and supplyand demand. To curtail scarcity and expand their business, companies use big data tohandle enormousamounts of information. The second principle is supply and demand. Big data offers the solution to increasing efficiency in retail supply chains. The more technology firms implement, the more data they are able to access. Through real-time analytics capabilities, technologies combined with the right solutions can significantly strengthen an organization's supply chain. Today, customers have high expectations, and organizations must keep up. To dothis, organizationsmust have accurate forecasting, streamlined production, and absolute resilience - all achievable through big data.

Evaluate the different market structures that big data benefits the least and the most from.

• According to my analysis of perfect competition, monopoly, oligopoly, and monopolistic competition, big data benefits the least from perfect competition. Prices reflect supply and demand under perfect competition, when there are many buyers and sellers. Companies earn just enough profit to stay in business. If they earn excessive profits, other companies will enter the market and drive their profits down. A critical aspectthat makesit the least beneficial for big data is homogenous products. Big Data operates andcontains greatervariety, increased volumes, and more velocity.

While data collection may benefit the business community, discuss the concerns for consumers as big data proliferates.

• The ethical use of big data in marketing and advertising is a concern.Businesses placegreat value on the data they collect about their customers. Through thisinformation, companiessend out targeted advertising, predict sales trends and improve theirproducts. Consumersfeel that data collection is an invasion of their privacy and a practice that caneasily beabused, leading to mistrust and suspicion of a business. Another concern isprotecting customerinformation and privacy. According to Wieczorkowski and Polak (2017),social consequencesare also a concern for consumers. The use of big data methods forprocessing personaland other private data, the subsequent threats to privacy, and the issue oflegal regulationsare also a concern. In addition to being concerned about the practice of collecting data, consumers are also concerned about their data being compromised or sold.