What are the features of micro-economics?

Answer 1

The important features of Micro Economics are mentioned below.

1. Nature of Analysis: In micro economics, the behaviour of individual consumers and producers in detail is analysed. It is study of subject matter from particular to general.
2. Method: Micro economics divides the economy into various small units and every unit is analysed in detail. It is a slicing method.
3. Scope: Micro economic analysis involves product pricing, factor pricing and theory of welfare.
4. Application: Both theoretically and practically, micro economics is useful in formulating various policies, resource allocation, public finance, international trade, etc.
5. Nature of Assumptions: Assumption of Ceteris Paribus is always made in every micro economic theory. It means theory is applicable only when 'other things being same'