Learn Microeconomics Basics
Microeconomics is a bottom's up approach to study the economy. Microeconomics studies the supply demand behaviors, consumer behavior and spending patterns, wage-price behavior, corporate policies, impact on companies due to regulations etc.
Top articles that we discuss here in Microeconomics basics are as follows -
- What is Microeconomics
- Differences between basics of Microeconomics and Macroeconomics
- Difference between Economies of Scale and Economies of Scope
- What is Diseconomies of Scale?
- What is the Economic Profit?
Microeconomics is a ‘bottom-up’ approach. It is a study in economics which involves everyday in life. Here you will learn microeconomics basics.
Macroeconomics vs Microeconomics Basics
Macroeconomics is a ‘top-down’ approach and is in a way, a helicopter view of the economy as a whole. Whereas Microeconomics is a ‘bottom-up’ approach. It is a study in economics which involves everyday in life.
Economies of Scale vs Economies of Scope
Economies of scale happen when a company reaches a point in production where the cost of production no longer increases; rather it gets reduced. Whereas Economies of scope happen when a company produces varieties of products and due to producing varieties of products, the cost of production gets reduced.
Finance vs Economics
Finance is also a science of managing funds subject to three main factors – time, the risk involved in the transaction and liquidity. Whereas economics is a social science that helps in management of goods and services subject to the production, consumption and other factors directly or indirectly affecting them.
Behavioural Economics helps us understand why so called “rational people” like us make decisions the way we do
Diseconomies of Scale
Diseconomies of scale is a state where the long run average cost of production increases with the increase in per unit of goods produced.