Managerial economics

 SCOPE OF ECONOMICS Microeconomics : The part of economics whose subject matter of study is  individual units , i.e. a consumer, a household, a firm, an industry, etc. It analyses the way in which the decisions are taken by the economic agents, concerning the allocation of the resources that are limited in nature. It studies  consumer behaviour , product pricing, firm’s behaviour. Factor pricing, etc. Macro Economics : It is that branch of economics which studies the entire economy, instead of individual units, i.e. level of output, total investment, total savings, total consumption, etc. Basically, it is the study of  aggregates and averages . It analyses the economic environment as a whole, wherein the firms, consumers, households, and governments make decisions. It covers areas like national income, general price level, the balance of trade and balance of payment, level of employment, level of savings and investment. The  fundamental difference between micro ...

The term Microeconomics is derived from the Greek word Mikros, which means "small" and "oikonomia", which means management of a household (administration). Microeconomics is that branch of economics which studies economic decisions made by individual economic units like an individual consumer, an individual firm etc. in detail. Microeconomics can be regarded as the microscopic study of the economy which focuses on behaviour of individual economic agents in an economy. The principal problem of any economy is the problem of efficient allocation of its scarce resources and equitable distribution of generated income. Significance of Microeconomics:- 1) Microeconomics has both theoretical as well as practical importance. It is highly helpful in the formulation of economic policies of an economy to promote overall welfare of its population. 2) Microeconomics tells us how  goods and services produced are distributed among the various people for consumption through price or...