March 05, 2019

Characteristics Of Microeconomics

The key features or characteristics of microeconomics can be highlighted as follows:

1. Individual Analysis

Microeconomics is concerned with the economic analysis of individual firm, consumer, household, particular product, particular price etc.

2. Limitedness

It studies about the limitedness of income, expenditure, budget, production, capacity and knowledge etc.

3. Small Units

Microeconomics is also called a slicing method of analyzing economic activities. It studies the economy by dividing into various single units and makes detail analysis of each and every unit.

4. Price Theory

Microeconomics is also known as price theory because it is related to factor pricing and product pricing.

       
characteristics of microeconomics
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5. Applicable

It is applicable in allocation of resources, formulation of policies and in international trade.

6. No Effect

It does not effect the whole economy because it deals with the analysis of very small individual unit of economy.