Microeconomics

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Microeconomics

Analysis of the behavior of individual economic units such as companies, industries, or households.

Microeconomics

The study of the behavior of individuals, companies, and industries. That is, macroeconomics studies economic decisions at the individual and small unit level. It does not look at the function of larger data sets like GDP or national debt. It is useful in helping determine what motivates individual buyers and sellers to do what they do. See also: Macroeconomics, Bottom-up investing.

microeconomics

the branch of economics concerned with the study of the behaviour of CONSUMERS and FIRMS and the determination of the market prices and quantities transacted of FACTOR INPUTS and GOODS and SERVICES. Microeconomic analysis investigates how scarce economic resources are allocated between alternative ends and seeks to identify the strategic determinants of an optimally efficient use of resources. See also THEORY OF CONSUMER BEHAVIOUR, THEORY OF THE FIRM, THEORY OF MARKETS, THEORY OF DEMAND, THEORY OF SUPPLY, MACROECONOMICS.
References in periodicals archive ?
Thus, Becker (1996) incorporated social norms of fairness into microeconomic theory by generalizing the human capital construct to form a new variable called "social capital," while Akerlof (1990) pursued the same end but by importing into economic analysis Adams's (1963) social psychological "equity theory" of motivation.
He argues that "profit maximization" in the world economy is "the total return over the lifetime of the investment," which is "not what microeconomic theory means by the term."(100) He applies this difference to American and Japanese exporting in the early 1980s, when the dollar increased in value.
This study provides an empirically tenable estimate of an average cost function using financial accounting ratios and bridges the gap between the microeconomic theory of production and finance--both important contributions to the existing literature.
Applying microeconomic theory to tying, a practice previously thought to be without merit, has almost certainly improved public policy.
These chapters vary widely in general interest, as well as in their authors' familiarity with microeconomic theory. Also, during an overly long period in which the present volume was in limbo or in press, several or the most valuable chapters appeared elsewhere in English and in more extended form.(4)
In this paper, we propose a simple geometric device that has the potential of becoming an important teaching aid in analyzing various problems in microeconomic theory dealing with either many firms or many time periods.
Unlike other texts on microeconomic theory, this text introduces the student to the general equilibrium approach to microeconomics by covering the two-sector model right from the start, rather than concentrating on partial equilibrium analysis.
29] "suspicious conduct is analyzed under the antitrust laws to determine whether it will produce injury to competition." The topic headings consist of "The Product Market," "The Geographic Market," "The Competitors," and "Market Power." These materials could easily be required reading in a college industrial organization or microeconomic theory course.
Farmer starts the book with the premise that since macroeconomics deals with the behavior of the economy as a whole, hence the natural foundation for macroeconomics lies in the microeconomic theory of general equilibrium.
After introductory materials on distributional ideology and distributional statistics, he presents both the macroeconomic and microeconomic theory of distribution.
Advanced Microeconomic Theory, Englewood Cliffs, NJ: Prentice Hall, 1991.