What are the three major problems of microeconomics?

Answer 1

The three major problems of microeconomics are resource allocation, production decisions, and distribution of goods and services. Resource allocation focuses on how limited resources are distributed among competing uses to maximize efficiency. Production decisions involve determining the optimal combination of inputs to produce goods at the lowest cost. Lastly, the distribution problem addresses how income and wealth are distributed among individuals and groups, impacting overall economic equity and social welfare.