Question

explain the importance of micro economics​

Answer 1

Answer:

Micro economics helps in explaining how the prices of different commodities are determined. It also explains how the prices of various factors of production such as rent for land, wages for labour, interest for capital and profits for entrepreneur are determined in the commodity and factor market.

The various features of Micro economics are as follows:

i. Price Theory:

ii. Partial equilibrium:

iii. Microscopic approach:

iv. Analysis of Resource Allocation and Economic Efficiency:

This in turn, can help to answer the following questions:

V. Use of Marginalism Principle:

VI. Analysis of Market Structure:

Answer 2

Answer:

Micro economics helps in explaining how the prices of different commodities are determined. It also explains how the prices of various factors of production such as rent for land, wages for labour, interest for capital and profits for entrepreneur are determined in the commodity and factor market