In this article, you will discover the meaning and features of microeconomics. Microeconomics is the main part of modern economics.  The word ‘micro’ is derived from the Greek word, which means small. 

Meaning of Microeconomics

Microeconomics means small. Microeconomics studies the economic behavior of individual units like consumer, producer, or a firm, the price of a particular commodity or a factor, etc.

Meaning and Features of Microeconomics

Features of Microeconomics

There are 8 features of microeconomics as follow:

1. Study of Individual Units

Microeconomics is the study of working of small individual economics units like particular households, individual firms, individual prices.

2. Price Theory

Microeconomics dealing with the measurement of the costs of goods and services as well as factors of production. 

3. Partial Equilibrium

Equilibrium means a balance between two factors. Equilibrium studies the equilibrium position of an individual economic unit.  It separates an individual unit from other forces and studies its equilibrium freely.

4. Based on Certain Assumption

Microeconomics starts with the basic theory, “Other things remaining constant” such as perfect competition, policy, pure capitalism, full employment, etc. These theories make the study simple.

5. Slicing Method

The slicing method is used in microeconomics. Microeconomics divides or flips the economy into the small individual unit and then studies each unit in detail. example study of a particular household.

6. Use of Marginalism Principle

Marginal means the value of how much additional utility will be provided by that extra unit. All important decisions are taken at the margin.

7. Analysis of Market Structure

Microeconomics studies markets individually such as monopoly, competition, monopolistic competition, oligopoly.

8. Limited Scope

In starting only we have studied that micro is a study of individual units. Microeconomics studies individual economic units and not the whole economy. Microeconomics does not deal with national problems like poverty, unemployment, inflation, etc so there is a limited scope of microeconomics.

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FAQ ON MICROECONOMICS

1. What are the Features of Microeconomics?
Answer: Study of individual units, Price theory, Partial equilibrium, Based on certain assumptions, Slicing Method, Use of marginalism principle, Analysis of Market Structure, Limited scope. 
2. Which method Microeconomics uses?
Answer: Microeconomics uses the slicing method. 

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