The words microeconomics and economics are combined to produce the term microeconomics. “Micro” is a Greek word that means “little.” It is a discipline of economics that investigates the link between economic qualities and their associated behaviour. It entails a grasp of the decision-making process in economics and finance management. Microeconomics focuses on the elements that influence individual behaviour and decision-making. Microeconomics is concerned with the supply and demand patterns, price, and production in individual markets. It depicts how a person’s choices and actions influence the supply and demand for products.
What Are The Theories And Concepts That Are Discuss In Microeconomics?
One of the core subjects in microeconomics is consumer demand theory. The value created through the satisfaction of wants and requirements is the central concept in this discipline. It depicts the relationship between customer demands for goods, pricing, and services according to the principles of microeconomics.
- The process of converting inputs into outputs is referred to as production theory. It is based on economic principles such as the relationship between price and productive factor, commodity and productive factor, and many more.
- Cost of production is the concept of determining the price of a product based on the materials and resources needed in its manufacture.
- Ideal Theory: It is based on the idea that no single person can decide the price of any systematized product.
- A monopoly is a commercial condition in which a single supplier of a specific commodity sells items to consumers without having to compete.
What Are The Concepts That Are Cover Under Basic Microeconomics For Assignment Writing?
Microeconomics is a wide subject, and we won’t be able to cover every concept related to it. However, here are a few key points to remember:
- One of the most important areas used by managers in decision-making is game theory. Managers employ game theory models to make better price and output decisions. Managers require a framework that anticipates the actions of others when they work in interactive reward contexts.
- Cournot’s basic duopoly model: This gives a full description of the reaction functions for the enterprises in question. The concept of profit maximisation is cover in the classic duopoly model, as well as the Nash equilibrium evaluation using the intersection method.
- Externalities and Market Imperfections is a branch of microeconomics that studies why markets fail. This section is concern with the issue of societal cost.
- Demand theory is a branch of economics that investigates the relationship between a consumer and his or her demands. Demands are for goods and services, as well as their prices. The goods that customers wish to buy from the market in a certain time period at a specific price are know as demand. The lower the supply, the lower the demand. The demand curve is build on this foundation.
All of these ideas and beliefs are critical for a student’s academic success under basic economics.Post Views: 188