Home > Microeconomics
Microeconomics is the study of the economic behaviour of individual consumers, firms, and industries and the distribution of production and income among them. It considers individuals both as suppliers of labour and capital and as the ultimate consumers of the final product. On the other hand, it analyzes firms both as suppliers of products and as consumers of labour and capital. Microeconomics seeks to analyze the market form or other types of mechanisms that establish relative prices among goods and services and/or allocates society's resources among their many alternative uses.
Fundamental concepts in microeconomics
Scarcity - Opportunity cost - Supply and demand - Elasticity - Consumer and producer surplus - Aggregation of individual demand to total, or market, demand
Consumer theory
Consumer Theory - Preference - Indifference curve - Utility - Marginal utility - IncomeIncome generally defined, is the money that is received as a result of the normal business activities of an individual or a business. For example, most individuals' income is the money they receive from their regular paychecks. In business and accounting,
Production and pricing theory
Production, costs, and pricingIn microeconomics, production is the act of making things, in particular the act of making products that will be traded or sold commercially. Production decisions concentrate on what goods to produce, how to produce them, the costs of producing them, and - Production theory basicsProduction, in microeconomics is simply the conversion of inputs into outputs. It is an economic process that uses resources to create a commodity that is suitable for exchange. This can include manufacturing, storing, shipping, and packaging. Some econom - X-efficiencyIn economics, x-efficiency is the effectiveness with which a given set of inputs are used to produce outputs. If a firm is producing the maximum output it can given the resources it employs, such as men and machinery, and the best technology available, it - Factors of productionClassical economics distinguishes between three factors of production which are used in the production of goods: Land or natural resources naturally-occurring goods such as soil and minerals. The payment for land is rent. Labor human effort used in produc - production possibility frontierIn economics, the production possibility frontier (the PPF also called the production possibilities curve (PPC or the transformation curve) is a graph that depicts the trade-off between any two items produced. It indicates the opportunity cost of increasi - Production functionIn microeconomics, a production function expresses the relationship between an organization's inputs and its outputs. It indicates, in mathematical or graphical form, what outputs can be obtained from various amounts and combinations of factor inputs. - Economies of scaleIn economics, economies of scale are situations where the average unit cost of producing a good or service decreases as the volume of production increases. The converse situation in which the cost of producing a good or service increases as the volume of - Economies of scope - Profit maximization - Price discrimination - Transfer pricing - joint product pricing - price points
Industrial organization
Market form - Perfect competition - Monopoly - Monopolistic competition - Oligopoly - Concentration ratio - Herfindahl index
Welfare economics
Welfare economics - Pareto efficiency - Kaldor-Hicks efficiency - Edgeworth box - Social welfare function - Income inequality metrics - Lorenz curve - Gini coefficient - Poverty level - Dead weight loss
Market failure
Market failure - Collective action - Information asymmetry - Externality - Social cost - Free goods - Taxes - Tragedy of the commons - Tragedy of the anticommons - Coase's Penguin
Financial economics
Efficient markets theory - Financial economics - Finance - Risk
International trade
International trade - Terms of trade - Tariff - List of international trade topics
Methodology
General equilibrium - Game theory - Institutional economics - neoclassical economics - Austrian economics
