![]() ![]() As a result, this analysis helps businesses, individuals, and the government prepare for future possibilities. The neo-classical approach states that consumers and producers derive optimum economic benefit by making rational decisions. Microeconomics studies the behavior of consumers and firms and correlates it with demand and supply. Unlike macroeconomics, it is a study of human behavior and overlooks aggregate factors like GFP, employment, inflation, and recession.The various concepts studied under the macroeconomics discipline include production theory, consumer behavior theory, pricing theory, marginal utility theory, and income theory. ![]() According to the neoclassical approach of microeconomics, the producers and consumers ensure maximum economic welfare through rational decision-making.Additionally, it also studies production and resource distribution within a particular segment, sector, or market. Microeconomics is an economic stream that correlates the behaviors of people, companies, and households with the changes in demand and supply.
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