Micro-economics It is that branch of economics which studies the inter-relationship of individual economic units i.e. households, firms, and industries in the production, consumption, exchange and distribution of goods and services.
OR
The study of behavior of individual consumer or a firm or an industry .
Area Of Micro-Economics:
- Individual consumer's behavior .
- Price of one product or commodity .
- Demand supply analysis for goods and services.
- One individual consumer's income and his consumption.
- Individual firm's location, revenue, cost & profit.
- Individual factor of production & remuneration of individual factor of production.
Importance:
- Helpful in understanding the working of private enterprise in the economy.
- Helps in knowing the conditions of efficiency.
- Information about the working of an economy without the created control .
- Study welfare of individual, household and consumer sector of the economy.
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