Foundations of Microeconomics

Foundations of Microeconomics

Introduction

Microeconomics is a branch of economics that studies the behavior of individual economic units, such as individuals, families and businesses, and the functioning of markets in which they operate. The classic definition of microeconomics micro-economics is said that part of economics that studies the allocation of scarce resources among alternative ends. Microeconomic theory uses formal models that attempt to explain and predict, using simplifying assumptions, the behavior of consumers and producers, and the allocation of resources arising as a result of their interaction in the market. In general microeconomic analysis is associated with price theory and its ...