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Microeconomics The study of economics at micro level

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Microeconomics The study of economics at micro level

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  1. Microeconomics - The Study Of Economics At Micro Level

  2. Microeconomics refers to the study of decision making at a micro-level by people or in a business in regard to the distribution of prices and resources of goods and services. Here, the taxes and regulations made by the government are also taken into account. It focuses on supply and demand that leads to the price change and level in the country. In short, microeconomics tries and understands human behavior and choices along with resource allocation.

  3. Key Principles Of Microeconomics Microeconomics involves in some key principles namely: • Labor Economics: According to this principle, the workers and employees are studied to understand the wage, employment, and income pattern.  • Production Cost: The selling price of the product or the service is in direct proportion to the cost of the resources used during the production or making of the same.  • Theory of Production: The understanding and study of the production of the goods and services.   • Demand, Supply, and Equilibrium: to create economic equilibrium, the supplier of the good or the service offers the same price as demanded by the customer in the market where competition is at peak. 

  4. Scope Of Microeconomics

  5. Uses Of Microeconomics Find below the basic uses of microeconomics as needed to understand the economy: • It is helpful in model building • It provides a production base  • Helpful in public finance • Guides business executives • Help in the resource allocation

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