Microeconomics

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Dictionary Says

Definition of 'Microeconomics'

The branch of economics that analyzes the market behavior of individual consumers and firms in an attempt to understand the decision-making process of firms and households. It is concerned with the interaction between individual buyers and sellers and the factors that influence the choices made by buyers and sellers. In particular, microeconomics focuses on patterns of supply and demand and the determination of price and output in individual markets (e.g. coffee industry).
Investopedia Says

Investopedia explains 'Microeconomics'

The field of economics is broken down into two distinct areas of study: microeconomics and macroeconomics. Microeconomics looks at the smaller picture and focuses more on basic theories of supply and demand and how individual businesses decide how much of something to produce and how much to charge for it. People who have any desire to start their own business or who want to learn the rationale behind the pricing of particular products and services would be more interested in this area.

Macroeconomics, on the other hand, looks at the big picture (hence "macro"). It focuses on the national economy as a whole and provides a basic knowledge of how things work in the business world. For example, people who study this branch of economics would be able to interpret the latest Gross Domestic Product figures or explain why a 6% rate of unemployment is not necessarily a bad thing. Thus, for an overall perspective of how the entire economy works, you need to have an understanding of economics at both the micro and macro levels.
Search results for

'Microeconomics'

  • A Practical Look At Microeconomics

    http://www.investopedia.com/articles/economics/08/understanding-microeconomics.asp
    ... A Practical Look At Microeconomics. June 27 2011 ... The answer to all of these
    questions and many more is microeconomics. Read on to ...

  • Microeconomics: Introduction | Investopedia

    http://www.investopedia.com/university/microeconomics
    Microeconomics studies a limited, smaller area of economics, including the actions
    of individual consumers and businesses, and the process by which both make ...

  • Microeconomics Vs. Macroeconomics

    http://www.investopedia.com/video/play/macro-versus-microeconomics
    ... Definitions; Investing; Personal Finance; Active Trading; Forex; Videos /.
    Microeconomics Vs. Macroeconomics. ... Read More ยป; Microeconomics Vs. Macroeconomics. ...

  • Microeconomics: Introduction | Investopedia

    http://www.investopedia.com/university/microeconomics/
    Microeconomics studies a limited, smaller area of economics, including the actions
    of individual consumers and businesses, and the process by which both make ...

  • Microeconomics: Introduction | Investopedia

    http://www.investopedia.com/university/microeconomics/default.asp
    Microeconomics studies a limited, smaller area of economics, including the actions
    of individual consumers and businesses, and the process by which both make ...

  • Microeconomics: A Brief History | Investopedia

    http://www.investopedia.com/university/microeconomics/microeconomics1.asp
    As early as the 18th century, economists were studying the decision-making processes
    of consumers, a principal concern of microeconomics. ... of microeconomics. ...

  • What's the difference between macroeconomics and microeconomics?

    http://www.investopedia.com/ask/answers/110.asp
    Microeconomics is generally the study of individuals and business decisions,
    macroeconomics looks at higher up country and government decisions. ...

  • Microeconomics: Factors Of Business Decision-Making | Investopedia

    http://www.investopedia.com/university/microeconomics/microeconomics4.asp
    Taking a look at how a business can use microeconomics for planning and production. ...
    Microeconomics: Factors Of Business Decision-Making. ...

  • Microeconomics: Conclusion | Investopedia

    http://www.investopedia.com/university/microeconomics/microeconomics7.asp
    ... Taxes; Microeconomics: Conclusion. ... Table of Contents. Microeconomics: Introduction;
    Microeconomics: A Brief History; Microeconomics: Assumptions and Utility; ...

  • Microeconomics: Assumptions and Utility | Investopedia

    http://www.investopedia.com/university/microeconomics/microeconomics2.asp
    A basic assumption of microeconomics is that because a consumer does not have an
    unlimited budget, his or her available cash for spending must be judiciously ...

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