If T were in the position of running my own business, microeconomics would plav a huge role in my daily decisions. One of the biggest challenges I would have to face 1s the opportunity cost of each decision I make For example, deciding to purchase from one distributor instead of another comes with an opportunity cost. What 1s the trade off for choosing one over the other? It could be a distributor that provides cheaper products but the trade off could be they make for lower quality products in my store. Another opportunity cost to consider would be the number of employees to hire. On one hand, more emplovees mean more work can be done. On the other hand,. more emplovees cost more money to pay their salaries. Therefore, opportunity cost 1s likely the most applicable principal of microeconomics that [ would use as a business owner. Another useful principal in running a business 1 marginal change. Understanding marginal change 1s vital to making efficient business decisions. For example_ selling a perishable product that 1s about to expire for less than its onginal value 1s beneficial because the alternative 1s an overall loss in inventory and results in a negative profit. Therefore, the marginal loss by discounting the product outweighs the opportunity cost of allowing the product to expire