Microeconomics is a branch of economics that analyses the conduct of firms and individuals in decision making related to deficient resource allocation and also the interaction between them. The fundamental principle of Microeconomics is based on the law of supply and demand.
Microeconomics is a discipline of economics that studies the behaviour of individuals and firms in making decisions regarding the allocations of scarce resources and the interaction among these individuals and firms.
It generally applies to the market for goods and services and deals with individuals and economic issues.
- Elements of microeconomics
- Demand-supply and equilibrium
- Measurement of elasticity
- Consumer demand theory
- Theory of production
- Costs of production
- Market structure
- Perfect competition.
Demand, supply and equilibrium
a) The equilibrium cost is the cost at which the quantity demanded equals the quantity supplied. It is determined by the intersection of the demand and supply curves. A shortage exists if the quantity of an excellent or service demanded exceeds the amount supplied at the current cost it causes upward pressure on price.
b) Supply and demand: The result of the interaction between consumers and producers in a competitive market that determines supply and demand equilibrium, price and quantity market forces tends to drop the price if the quantity demanded and price rises if the amount requested exceeds quantity supplied.
Measurement of elasticity
a) Applies to the extent to which the quantity supplied of a commodity changes following the amendment in one of the factors that determines supply.
Types of elasticity
- Price elasticity of supply
- Cross elasticity of supply
- Arc elasticity of supply
- Point elasticity of supply
Price elasticity of supply: This is the degree of responsiveness of the quantity supplied to changes in the price of the commodity.
Factors affecting price elasticity:
- The durability of the product: Durable products can be stored hence supply can be varied as the price changes. They have elastic supply while perishable products have an inelastic supply.
- Gestation period: Goods that take longer time to mature will have an inelastic supply while those that develop will have an elastic supply.
- The existence of excess capacity: If the firm's facilities are not fully employed, increases in the price will lead to increase in output.
- Institutional factors: where the supply of the commodities is governed by the policies, such as quotas the elasticity of supply will be low.
- The existence of goods in stock: where the product is held in the stock. The change in price will attract more supply, and this leads to elasticity in supply.
Importance of the concept of elasticity of supply:
- Used in the determination of pricing policy
- Used in formulating government policy
- Used in formulating imports and exports policy
- Used in formulating consumption policy
This is the coefficient of price elasticity between two points on a demand curve.
Refers to the price elasticity at a point on the demand curve.
Theory of a firm
- A firm is a business enterprise which buys and sells goods and services to the customers having objective to make profit.
- Industry refers to a group or family of firms that produce similar goods or services, for instance transport industry which include all vehicles.
Cost of production
Cost of production is the payment made to factors of production:
- Total cost
- Average cost
- Marginal cost
- Total cost: They are costs incurred in the process of production. It's the sum of variable costs and total costs.
- Fixed costs: The costs which do not change with a change in output. It is associated with fixed factors of production and includes rent rates, interest on loans, insurance and depreciation.
- Average costs: These are costs incurred in the production of a single unit output.
- Marginal cost: These are costs incurred in the production of an extra unit of output.
This is where there is stiff competition in the market whereby the sellers have quality goods which are in demand.
Benefits of microeconomics
- Useful in the efficient employment of resources: It is helpful in the efficient employment of limited, scarce resources of a country. It explains the condition of efficiency in both production and consumption, which is essential in economics and highlights the components which are responsible for the departure.
- Understanding free enterprise economy: It is of great importance in understanding the working of a free enterprise economy without any central control.
- Helpful in the development of international trade; microeconomics is also beneficial in the progress of international trade. It is used to describe the gains from international trade, the balance of payment disequilibrium and the determination of foreign exchange rate.
- Helpful in understanding the implications of taxation; it's also useful in comprehending the significance of taxation, it supports in explaining as to whether an income tax is of worth.
- Offers the basis for Welfare Economics; the entire structure of Welfare Economics has been built on price theory which is the fundamental part of microeconomics. It shows how relative prices of various products and factors are formed. These conditions can be of great help in raising the standard of living of the population.
- Provides tools for evaluating Economic policies of the state; microeconomics theory describes the condition of efficiency in consumption and production and stresses on the components which are responsible for departure from ability. In this microeconomics suggests suitable Economic policies to promote Economic efficiency and welfare of the people. It also helps the state in formulating correct price policies and evaluating them in proper perspective.
GRAB OPPORTUNITY TO PRESERVE HIGH GRADE THROUGH MICROECONOMICS ASSIGNMENT HELP
Microeconomics is the foundation of economics. It suggests people use the confined resources in an optimum manner. The purpose of Microeconomics Assignment Help of Mywordsolutions is to serve and help students who are battling with this subject. Excelling with higher grades is a dream of every student, and our Online Assignment Help does entire work in a very professional manner to make such dreams come to reality for students. Microeconomics Assignment Help is a necessity for students because it also clears the complex topics related to the subject.
Currently, there would be more than thousand websites that would be offering the Online Economics Tutor Service for microeconomics, but when it comes to originality, writing quality and fast delivery, our Online Writing Help is the supreme. This Assignment Help has got the best-qualified experts who can provide precise and plagiarism free work. If you are looking for the most accurate and authentic help for Microeconomics, then Mywordsolutions is the best place for you which can customise and personalise as per your demands and needs.
This Online Assignment Help has maintained a 100% record of quality work for every project, assignment, coursework or homework that it has taken. So if you are finding yourself in trouble due to these Microeconomics assignments, don't feel sad as you are not the only one who is facing such kind of problem. Students and scholars from all around the planet have placed their trust on Microeconomics Assignment Help professional expertise and saved themselves from getting lower grades. With our Online Tutor Service, they were able to keep a lot of their time which they utilised in their studies and ultimately stood up with an incredible score in their class.
WHY IS Mywordsolutions GAINING POPULARITY?
All the university scholars from around the globe have admired the Microeconomics Assignment Help that our in-house writers have provided. There are many reasons behind this like affordable prices, swift delivery and top-notch quality. Apart from this, some more perks that we offer are stated below:
- Originality along with Affordability
- Proficient Economic Writers
- Swiftest Delivery Service
- Extensive Range of Subjects
1. Originality along with Affordability: Students prefer to give their microeconomics assignment to this Online economics Writing Help as they know that whenever they upload their work, they will always get the best and top-notch work.
The structure decided for payments is also very user-friendly as it has been designed by keeping in view the student's financial constraints in mind. Our Economics Assignment Help always offers economical price to the scholars' and students.
2. Proficient Economics Writers: Our Online Tutor Service feels self-satisfied for having such prolific writers who can serve students with best writing solutions. Our gem experts have more than 20 years of experience in this field and can write any paper according to the guidelines provided by your university.
3. Swiftest delivery service: Our Online Assignment Help experts ensure that help should reach you as fast as possible and along with that the authenticity of the support should be maintained. Keeping this thing in mind, they dispatch the order quickly without making any compromise with the quality.
4. Extensive Range of Subjects: The well-versed writers of this Economics Assignment Help can present help in any subject either technical or non-technical. It is of no concern for them that which subject is bothering you, access our customer support team that is available 24 hours and upload your order in a comfy way.
Mywordsolutions has been a trusted name in this industry for serving and presenting the best writing services. Scholars can also assess the quality of work by going through the samples and examples. The target of this Online microeconomics Writing Help is to help you score marvellous grades and also to attain that we our whole team do not spare any effort when it comes about students and their assignments.
Dispatch your assignments either at www.mywordsolutions.com, or you can also send them to us via email of Mywordsolutions.