BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Microeconomics studies the decisions of individuals and firms to allocate resources of production, exchange, and consumption. Microeconomics deals with prices and production in single markets and the interaction between different markets but leaves the study of economy-wide aggregates to macroeconomics.

Detailed explanation-2: -Microeconomics is based on models of consumers or firms (which economists call agents) that make decisions about what to buy, sell, or produce-with the assumption that those decisions result in perfect market clearing (demand equals supply) and other ideal conditions.

Detailed explanation-3: -Businesses make decisions based on the competition they face in the market. The more competition a business faces, the less leeway it has in terms of pricing. Both individuals and consumers take the opportunity cost of their actions into account when making their decisions.

Detailed explanation-4: -By studying the mechanisms behind how these decisions are made, microeconomics enables us to understand concepts such as how prices are determined, what factors impact our decision to purchase goods, and how businesses can allocate their resources to increase efficiency.

Detailed explanation-5: -Definition: Microeconomics is the study of individuals, households and firms’ behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.