What is microeconomics?

microeconomics is an area of ​​economic study that focuses on how the behavior and decisions of the individual affect the supply and demand for goods and services. For the purposes of microeconomics, the activities of individuals, households and enterprises are essential, unlike the study of macroeconomics, which focuses on national and international economic trends. Despite the differences between the two areas, however, micro -level trends and the study of microeconomics are considered to be the basis of modern macroeconomics. Key fields applied microeconomics are the theory of price and work economy. While each of these subfields relies on different theories and tools, all of them return to the theory of supply and demand. Theoretically, all markets are perfectly competitive, with supply and demand prices. In practice, however, individuals and groups can directly affect the supply and demand for products and services.

Surprisingly simple questions fall into the area of ​​microeconomics. For example, an employee can get an increase. Increasing this causes that fromAměrstuvnu will increase or reduce working hours? Not all employees make the same decision, which will make this question focused on a study of microeconomics, which assumes that all decisions must be rational.

Another key area of ​​microeconomics is the study of market failure. Market failure is not a prerequisite that the market has stopped working; Instead, it is a situation where the market is ineffective, whether in the organization of production or the allocation of goods and services, usually to an extreme point. These market failure may occur due to monopolies, lack of information for buyers or sellers, and other problems.

opportunity costs are also the main problem in microeconomics. While it is difficult to measure in macroeconomics, the cost of opportunity can be cleaned up in microeconomics: an individual may point to specific opportunities available as they use their resources for other jobsLy. For example, an employee may need to decide to take a class that improves its chances of promotion over the holiday.