Introduction
Microeconomics is a branch of economics that studies the behavior of individuals or business and analyzes how they make decisions regarding allocating limited resources to satisfy their needs. It is concerned with individual decision making, market structure, resource allocation market failures etc.
The main 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.
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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.
Key Features Of Microeconomics In Short
* It is concerned with individual economic unit such as individuals, households, firms etc.
* It studies how resources are allocated to meet the needs of individuals
* It has no large effect in the whole economy of the country
* It analyzes producer behavior, consumer behavior, demand and supply etc.
* It studies the impact of government policies and regulations