What is Micro Economics - Meaning - Significance - Limitations
The word “Micro” means a small part or a millionth part. So, Micro Economics is the study of the economy at a small level i.e., we are interested in the study of an individual unit, particular firm, industry like Cotton, textile, rice, etc. an individual customer behavior in buying and selling goods and services (its Consumption and Spending’s patterns). We study the income of particular individuals, firms, industries and not Natio nal Income. We analyze the price level of a particular products or a factor of production and not the General Price Level prevailing in the whole economy. The demand and supply of a particular product is analyzed and not the aggregate demand and aggregate supply. Significance / Importance of Micro Economics 1. Micro Economics has great importance for the study of economy both at theoretical and practical level. For Example, at theoretical level, we study the working and functions of an economy at an individual level. Ho...