The term 'macro' denoted 'small'.Hence,micro-economics is the study of the behavior of individuals
units.For example,in micro-economics we study how a particular firm maximises profit or how an individuals maximises satisfaction from his purchases.As opined by McConnell "micro-economics is useful in achieving worm's eye view of some very specific components of our economics system".
There are numerous definitions of micro economics.Some of them have been presented here.
According to Edwin Mansfield "micro economics deals with the economics behavior of individuals units such as consumers,firms and resources owners".
K.E.Boulding has given a comprehensive definition in these words "micro economics is the study of particular firms,particulars housholds,individuals prices,wages,incomes,individuals industries,particulars commodities".
In is obvious that in micro economics the unit of study is the part rather than the whole.
It studies the small components of nations economy.The study is focus on particulars unit,not the aggregate of all units.For example,micro economics explains how the single firm determines the price for a particular products.what amount of out put will maximise its profit,how it determines the lowest cost combination of factors like labour,materials,capital equipments.It also seeks to explain how the individuals consumer distributed his total expenditure among and services so as to maximise utility.
Micro economics assume as given the total output,total employment,and total spending for all goods and services.It then examines how output and employment are allocated among various individuals industries a firms within industries.It examines how the prices of various products of the individuals firms are established.Micro-economics asks how shifts in consumer spending from the employment to be related among different goods and services and among different firms and industries .
Concept of micro economics.
units.For example,in micro-economics we study how a particular firm maximises profit or how an individuals maximises satisfaction from his purchases.As opined by McConnell "micro-economics is useful in achieving worm's eye view of some very specific components of our economics system".
There are numerous definitions of micro economics.Some of them have been presented here.
According to Edwin Mansfield "micro economics deals with the economics behavior of individuals units such as consumers,firms and resources owners".
K.E.Boulding has given a comprehensive definition in these words "micro economics is the study of particular firms,particulars housholds,individuals prices,wages,incomes,individuals industries,particulars commodities".
In is obvious that in micro economics the unit of study is the part rather than the whole.
It studies the small components of nations economy.The study is focus on particulars unit,not the aggregate of all units.For example,micro economics explains how the single firm determines the price for a particular products.what amount of out put will maximise its profit,how it determines the lowest cost combination of factors like labour,materials,capital equipments.It also seeks to explain how the individuals consumer distributed his total expenditure among and services so as to maximise utility.
Micro economics assume as given the total output,total employment,and total spending for all goods and services.It then examines how output and employment are allocated among various individuals industries a firms within industries.It examines how the prices of various products of the individuals firms are established.Micro-economics asks how shifts in consumer spending from the employment to be related among different goods and services and among different firms and industries .
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