Definition of Microeconomics:
The part of economics concerned with single factors and the effects of individual decisions.
Microeconomics is the social science that studies the implications of incentives and decisions, specifically about how those affect the utilization and distribution of resources. Microeconomics describes the pricing of products and money, causes of different prices to different people, how can provide more or less benefit to producers, consumers and others, and how individuals best coordinate and cooperate. Generally speaking, microeconomics provides a more complete and detailed understanding than macroeconomics.
Microeconomics is the study of what is likely to happen (tendencies) when individuals make choices in response to changes in incentives, prices, resources, and/or methods of production. Individual actors are often grouped into microeconomic subgroups, such as buyers, sellers, and business owners. These groups create the supply and demand for resources, using money and interest rates as a pricing mechanism for coordination.
Study of the economic behavior of individual units of an economy (such as a person, household, firm, or industry) and not of the aggregate economy (which is the domain of macroeconomics). Microeconomics is primarily concerned with the factors that affect individual economic choices, the effect of changes in these factors on the individual decision makers, how their choices are coordinated by markets, and how prices and demand are determined in individual markets. The main subjects covered under microeconomics include theory of demand, theory of the firm, and demand for labor and other factors of production.
How to use Microeconomics in a sentence?
- Breaking down another companies microeconomics can teach you a lot about how they run their business and what their goals are.
- Microeconomics deals with prices and production in single markets and the interaction between different markets but leaves the study of economy-wide aggregates to macroeconomics.
- Microeconomics studies the decisions of individuals and firms to allocate resources of production, exchange, and consumption.
- Microeconomists formulate mathematical models based on samples of behavior and test the models against real-world observations.
- The nature of these relationships has been central to human ecology and geography, microeconomics, and the anthropological and political sciences.
- If you want to try and emulate a successful businesses, you can really break down their microeconomics to try and gain insight from what they did well.
Meaning of Microeconomics & Microeconomics Definition