Definitions for microeconomicsˌmaɪ kroʊˌɛk əˈnɒm ɪks, -ˌi kə-
This page provides all possible meanings and translations of the word microeconomics
Random House Webster's College Dictionary
mi•cro•ec•o•nom•ics*ˌmaɪ kroʊˌɛk əˈnɒm ɪks, -ˌi kə-(n.)
the branch of economics dealing with particular aspects of an economy, as the price-cost relationship of a firm.
Ref: Compare macroeconomics.
* (used with a sing. v.).
Origin of microeconomics:
the branch of economics that studies the economy of consumers or households or individual firms
That field of economics that deals with the small-scale economic activities such as that of the individual or company.
Microeconomics is a branch of economics that studies the behavior of individual households and firms in making decisions on the allocation of limited resources. Typically, it applies to markets where goods or services are bought and sold. Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the quantity supplied and quantity demanded of goods and services. This is in contrast to macroeconomics, which involves the "sum total of economic activity, dealing with the issues of growth, inflation, and unemployment." Microeconomics also deals with the effects of national economic policies on the aforementioned aspects of the economy. Particularly in the wake of the Lucas critique, much of modern macroeconomic theory has been built upon 'microfoundations'—i.e. based upon basic assumptions about micro-level behavior. One of the goals of microeconomics is to analyze market mechanisms that establish relative prices amongst goods and services and allocation of limited resources amongst many alternative uses. Microeconomics analyzes market failure, where markets fail to produce efficient results, and describes the theoretical conditions needed for perfect competition. Significant fields of study in microeconomics include general equilibrium, markets under asymmetric information, choice under uncertainty and economic applications of game theory. Also considered is the elasticity of products within the market system.
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