microeconomics

Examples of microeconomics in the following topics:

• Microeconomics

  • Microeconomics deals with the economic interactions of a specific person, a single entity, or a company.
  • Therefore, microeconomics is the study of markets.
  • Microeconomics assumes businesses are rational and produce goods that maximizes their profit.
  • The science of microeconomics covers a variety of specialized areas of study including:
  • Microeconomics is based on the study of supply and demand at the personal and corporate level.

• Key Differences

  • Microeconomics focuses on individual markets, while macroeconomics focuses on whole economies.
  • The main difference between microeconomics and macroeconomics is scale.
  • Microeconomics studies the behavior of individual households and firms in making decisions on the allocation of limited resources.
  • Another way to phrase this is to say that microeconomics is the study of markets.
  • Adam Smith's book, Wealth of Nations, was the basis of both microeconomic and macroeconomic study.

• Microeconomics

  • Modern microeconomics is the study of the behavior and interactions among the various individuals and organizations within an economic system.
  • Typically, microeconomics considers the forces that shape the behavior of such economic elements as consumers, producers, buyers, sellers, individuals, sole proprietors, partners, corporations, not-for-profit organizations and industries.
  • Modern neoclassical microeconomics (orthodox economics) is "atomistic" i.e. the individual units are studied and summed to reflect the operation of the whole or system.
  • Since market transactions are observable and quantifiable, microeconomics tends to focus on competition in the context of market exchange.
  • Orthodox microeconomic theory can be thought of as a set of "tools," as a perspective or as a way of thinking.

• Introduction to the Rules of the Game

  • Neoclassical microeconomics does not often explicitly consider the nature of these rules and their relation to economic behavior.

• Introduction to Demand and Consumer Behavior

  • In Neoclassical microeconomics, the objective of the consumer is to maximize the utility that can be derive given their preferences, income, the prices of related goods and the price of the good for which the demand function is derived.

• Introduction to Optimization and Markets

  • One of the basic precepts of Neoclassical microeconomics is that voluntary markets for goods with nonattenuated property rights will provide the information and incentives that coordinate individual behavior to achieve the maximum utility for society.

• Introduction to Microeconomics

• Is Economics a Science?

  • A focus of the subject is how economic agents behave or interact both individually (microeconomics) and in aggregate (macroeconomics).
  • Microeconomics examines the behavior individual consumers and firms within the market, including assessment of the role of preferences and constraints.
  • Formal economic modeling began in the 19th century with the use of differential calculus to represent and explain economic behavior, such as utility maximization, an early economic application of mathematical optimization in microeconomics.

• Defining Macroeconomics

  • Economics is comprised of many specializations; however, the two broad sub-groupings for economics are microeconomics and macroeconomics.
  • In this manner it differs from the field of microeconomics, which evaluates the motivations of and relationships between individual economic agents.

• Introduction to Property Rights and Markets

  • Most of Neoclassical microeconomics is a story about the way market exchange reveals, communicates and uses individual evaluations about marginal benefits (MB) and marginal costs (MC).