Question

Explain the nature and scope of micro economics​

Answer 1

Answer:

Micro means a small part of a thing. Microeconomics thus deals with a small part of the national economy. It studies the economic actions and behaviour of individual units such as an individual consumer, individual producer or a firm, the price of a particular commodity or a factor, etc

Answer 2

Nature of Microeconomics

• Three goals of Microeconomics:

• What to produce?------ Goods and services

• How to produce? ------Production Process

• For whom to produce? ----Consumer Behavior

The main contents covered under microeconomics include:

• “Theory of Demand”,

• Theory of the firm, and

• Demand for labor and other factors of production.