Asked by Andy Blackwell Uncategorized
What is a micro theory?
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Asked in Micro Economics
What are the features of Micro Economics?
The important features of Micro Economics are mentioned below. 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. Method: Micro economics divides the economy into various small units and every unit is analysed in detail. It is a slicing method. Scope: Micro economic analysis involves product pricing, factor pricing and theory of welfare. Application: Both theoretically and practically, micro economics is useful in formulating various policies, resource allocation, public finance, international trade, etc. 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'
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Asked in Micro Economics
What are the scope of microeconomics?
The scope of Micro Economics is concerned with the following topics :- 1. Commodity Pricing Prices of individual commodities are determined by market forces of demand and supply. So micro economics makes demand analysis (individual consumer behaviour) and supply analysis (individual producer behaviour). 2. Factor Pricing Land, labour, capital and entrepreneur, all factors contribute in production process. So they get rewards in the form of rent, wages, interest and profit respectively. Micro economics deals with determination of such rewards i.e. factor prices. So micro economics is also called as 'Price Theory' or 'Value Theory'. 3. Welfare Theory Micro economics deals with optimum allocation of available resources and maximisation of social welfare. It provides answers for 'What to produce?', 'When to produce?', 'How to produce?' and 'For whom it is to be produced?'. In short, Micro economics guides for utilizing scarce resources of economy to maximize public welfare.
Asked in Business & Finance, Micro Economics
Scope of micro economics?
Under the scope of microeconomics we study about different fields of areas of it . The major scope of microeconomics covers the following topics: 1. theory of demand (consumers behaviours) 2. theory of production ( producers behaviours) 3. theory of product pricing (price & output determination) 4. theory of factor pricing ( distribution) 5. theory of economic welfare
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