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    Microeconomics Course Overview

    Introduction To Microeconomics

    Microeconomics and Macroeconomics constitute the two nodal branches of economics. In Microeconomics, individuals are often categorised as belonging to microeconomic subgroups such as business owners, buyers and sellers. The study of microeconomics is basically an analysis of the tendencies that are supposed to originate when these individual actors make a decision. Changes with reference to incentives, resources and prices of production coupled with production methods are recorded.


    Positive microeconomics discusses economic behaviour and what to expect when particular variables change. Positive microeconomics tends to provide insight into a company's sales, productivity and profit based on any recent changes in their manufacturing or marketing strategy.


    These insights are then used to prescribe the course of action for these companies or governments to work effectively and undertake measures such that their profits remain intact and the demand chain is sated.

    What Is Microeconomics?

    Microeconomics is a branch of social science that looks at how decisions and incentives affect how resources are allocated and used. Microeconomics explains how and why different things have varying values, how people behave and profit from efficient production and trading, and how people may work together and coordinate best.

    In general, microeconomics focuses on the issues that affects individual, groups, or organisations as compared to the macroeconomics which focuses on issues affecting the national and global economy.



    According to the official definition, microeconomics is the area of economics that examines how people and businesses behave and how decisions are made in light of scarce resources. Microeconomics research demonstrates how households and businesses interact or work together. This contact develops a market for products and services, which significantly impacts product pricing.


    A key idea in modern microeconomics is the circular flow of economic activity, which demonstrates how families and businesses interact. The components of the economic activity flow are:

    components of economic activity flow
    1. Money flowing to and from homes and businesses as revenue

    2. Receiving of goods and services by households

    3. Sale of resources under private ownership to companies so they can make products

    4. The relationship between business and household spending

    5. Microeconomics pays special attention to this relationship and economic activity to monitor total firm output, household income, and total spending

    The following examples and circumstances illustrate how to apply the definition of microeconomics:

    1. Searching for the best loan interest rates as first-time homebuyers.

    2. Customers favour one product over another when making a purchase.

    3. Company acquiring capital assets to grow.

    4. Two companies are vying for the same market.

    5. Customers' demand is declining as a result of rising service costs.

    6. Businesses reducing product supply as a result of price hikes.

    The Meaning of Microeconomics

    A subfield of social science known as microeconomics theory focuses on analysing separate, individual economic entities that collectively make up the whole economy. Each individual, family, business, or industry is a separate economic unit. It is the area of economics where the consequences of specific elements and individual decisions are discussed.


    The primary focus of microeconomics is on the variables that affect individual economic decisions, the impact of changes in these variables on each decision-maker, and how demand and prices are established in specific markets.


    The study of phenomena that affect the entire economy, such as unemployment, GDP (gross domestic product) growth or decline, and inflation, is called macroeconomics, in contrast to microeconomics.


    Analysing market processes that set relative prices for goods and services and dividing scarce resources among several possible uses are some of the objectives of microeconomics. It demonstrates the circumstances under which open markets finally result in favourable distributions.


    Simply put, it is the study of how people make decisions in light of the fact that they have a certain amount of time and money to spend on things.


    Microeconomics also examines market failure, or when markets fail to deliver useful and efficient outcomes.


    Microeconomics is defined as follows in the Financial Times' glossary of business terms:


    “The study of trends that pertain to the different elements (companies, industries, consumers, etc.) that make up the economy.”

    Basic Principles of Microeconomics

    Supply And Demand: 

    Over time, when demand outpaces supply, suppliers either increase their supply or raise their pricing. In an ideal world, demand would decline as prices rose since fewer people could afford it. By doing this, providers buy themselves some time to resume meeting demand. In contrast, suppliers would have to reduce their supply or lower the pricing of the goods offered if supply rose faster than demand. Keep in mind that manufacturers currently have an excess of stock. So as prices decline, demand would increase, and the supply would balance out. Finally, equilibrium is reached when supply and demand are at their best. The relationship between supply and demand and the equilibrium condition presupposes that all other variables, outside price and demand, remain constant.

    basic principles of microeconomics

    Opportunity Cost:

    A consumer who also makes decisions has a finite amount of money and an infinite number of ways to spend that money. The opportunity cost is the price a buyer pays for not selecting the optimal option. This presumes that the options are exclusive of one another.

    It's a chance that a decision-maker passes up. If a commuter takes train to work instead of driving. The train takes 70 minutes and the driving takes 40 minutes. The opportunity cost would be the hour that will be spent elsewhere each day.


    Law of Decreasing Marginal Utility

    The utility of consumers is maximised by using this microeconomics approach. Diminishing marginal utility is very important in determining what people will buy. This law emphasizes how the demand for specific goods declines when a customer consumes more units in a row. For instance, a person might purchase some ice cream, eat it, and then purchase more. Finally, after consuming three ice creams, he decides he no longer wants them and quits buying them.


    Giffen Goods: 

    Giffen products are essentials whose price increases have no impact on sales; this is a part of advanced microeconomics. Giffen products are distinctive due to the price and demand relationship. These are likely logical choices where the purchasers are prepared to spend more despite price hype. These extraordinary items are called "Giffen goods," with a positively sloping demand curve. For instance, a rise in gasoline prices does not result in a decrease in demand. Products that want to be categorised as Giffen Goods need to meet some of the requirements listed below:

    • A lack of available alternatives.

    • The replacement should be subpar.

    A significant amount of the customer's budget should go toward purchasing the goods.


    Veblen Goods:

    Giffen goods are comparable to Veblen goods. These items are regarded as a sign of status, esteem, or luxury. Consumers don't mind shelling out more money for these products. Typical examples are jewellery, jewels, and Rolls Royce vehicles are the greater costs. The more expensive something is, the more eagerly people will buy it.


    Elasticity And Income:

    The demand for more expensive things rises along with income. Additionally, as income declines, so does demand. Alternatively, as the cost decreases, customers can purchase more products. The customer's purchasing power increases in both scenarios. On the other hand, the products of Giffen and Veblen are illustrations of inelastic pricing demand.


    Elasticity And Substitution:

    Substitution effect: People may select a less expensive option when prices are greater than they can afford. The price elasticity of demand refers to this phenomenon of changing demand due to price.


    For instance, if leather jacket prices increase, people will buy woollen overcoats instead to keep warm in the winter.

    Opportunity Cost

    Opportunity cost is the advantage that was lost because a particular option was not selected. It is necessary to weigh each choice's advantages and disadvantages to assess opportunity costs correctly. Opportunity costs have a value that can help people and businesses make more lucrative decisions. Opportunity cost is a wholly internal expense that is only utilised for strategic consideration; it is not included in accounting profit and is not reported externally. Opportunity cost examples include choosing to build a new manufacturing facility in Los Angeles as opposed to Mexico City, forgoing an equipment upgrade, or selecting the most expensive product packaging over less expensive alternatives.

    An opportunity cost is just the difference between the expected returns of each choice, and this is the formula for doing so. Formula and Calculation of Opportunity CostOpportunity Cost=FO−CO Where: FO=Return on best-forgone optionCO=Return to the chosen option. Most day-to-day decisions aren't made with a complete grasp of the potential opportunity costs. Still, before making major decisions like buying a home or establishing a business, you will probably meticulously investigate your financial decision's advantages and disadvantages. 

    For instance, many people would check the balance in their savings account before making a purchase when they feel cautious. But when people make that spending choice, they frequently don't consider the items they have to give up. The issue arises when you never think about what else you could do with your money or make purchases without considering the missed options. Occasionally ordering takeaway for lunch can be a smart move, especially if it gets you away from the workplace for a much-needed break.

    However, if you purchase one cheeseburger per day for the next 25 years, you might lose out on several opportunities. Spending that $4.50 on a burger over that period of time, assuming a fairly realistic 5 percent RoR, might add up to a little over $52,000, excluding the lost possibility for better health. Although this is just a simple example, the main point applies to many different circumstances. It might seem excessive to consider opportunity costs each time you want to buy a candy bar or take a trip. Opportunity costs, however, are present everywhere and affect all choices, big or small.

    Scarcity And Choice

    When funds are few, choices must be made, which is what we learn in basic microeconomics. Scarcity refers to the restricted nature and availability of certain resources, whereas choice refers to people's options over distributing and using those resources. The issue of choice and scarcity sits at the core of economics, which is the study of how people and society decide how to distribute limited resources.


    While certain resources are abundant, others are scarce. We frequently focus more on how we will spend our time on any particular day than the air we breathe. That's because there seems to be a lot of air to breathe, and there are only so many hours in a day. Because we do not choose to breathe, it is not particularly fascinating to an economist.


    On the other hand, a whole field of economics is dedicated to comprehending and explaining our decisions regarding how to spend our free time. The labour market places great significance on the number of hours we choose to spend working and playing. People's abilities are also in short supply, in addition to their time. The effectiveness of any allocation is often a problem for economists: how can most of such limited resources be utilised?

    While the focus of mainstream economics microeconomics is on the choices and preferences of individuals in society, assessing the equitable distribution of limited resources necessitates the aggregate of preferences in order to assess the usefulness of distribution to society as a whole (see welfare economics). Therefore, the study of scarcity and choice should take into account both an allocation's efficiency as well as its equity or distributive fairness. In fact, the dispute between planned economies and free-market economies centres on the topic of equity.

    A resource's rarity in a given situation can be measured and assessed objectively. In the past, economists have also looked at how people make decisions about scarce resources as though they were reached through straightforward, impartial calculations. Obviously, people's decision-making is influenced by emotion as much as logic. The quickly growing discipline of behavioural economics uses psychological insights to deepen economists' understanding of decision-making at a more individualised level.

    A government or community can utilise a microeconomics policy system as a tool to plan and distribute resources, services, and products across a region or country. Economic systems control the factors of production, including land, capital, labour, and natural resources. The various institutions, organisations, entities, decision-making processes, and consumption patterns form the economic structure of a community.


    Types of Economic Systems:

    types of economic systems

    i. Traditional Economic System

    ii. Command Economic System

    iii. Market Economic System

    iv. Mixed System


    Competitive Markets: Demand And Supply

    To describe different kinds of marketplaces, economists have developed models. The most basic kind of competition is perfect competition, where many providers and consumers are precisely the same, where finding buyers and sellers is free, and where there are no impediments to new suppliers entering the market. In a market with perfect competition, nobody can influence prices.

    Both parties assume the market price, and the market-clearing price is the point at which there is an equilibrium between excess supply and demand. As long as they can sell the product for more than it costs them to produce one, suppliers will continue to do so (the marginal cost of production). As long as the pleasure they gain from their consumption outweighs the cost, consumers will continue to make purchases (the marginal utility of consumption).

    Price increases will encourage more vendors to enter the market. As taught in intermediate economics, supply will increase until a market-clearing price is reached again. Suppliers who cannot cover their costs will discontinue if prices decline. Typically, economists combine the volumes suppliers are willing to produce at various prices into a formula known as the supply curve. The likelihood of suppliers producing more increases with pricing. On the other hand, the cheaper a product is, the more people tend to buy it. The demand curve is the equation that expresses the amounts that consumers are willing to purchase at each price.

    Elasticity of Demand And Supply

    Understanding the demand and supply theory is essential for a complete understanding of economics. It has been proposed that, when other factors stay constant, certain linkages exist between price and amount sought and provided. But how much does the quantity given or demanded change if the price changes? A significant price rise or decrease may have minimal impact on the supply or demand for goods. 

    On the other hand, a minor price rise or decrease could cause a significant shift in either supply or demand. In theory, it is challenging to foresee precisely what would happen in the circumstances like this. The price-quantity relationship for each product may be unique. It is up to economists to gather data and determine this link. Demand elasticity gauges how easily price fluctuations influence a commodity's quantity. To determine how much has changed, one must compare the percentage change in price with the subsequent percent change in the quantity requested.

    The formula is:
    n = Price Elasticity
    = percentage change in quantity demanded / percentage change in price
    or
    = Proportional change in quantity demanded / Proportional change in price
    = (delta Q/ Q) / (delta P/ P)
    = (delta Q/ delta P) * (P/Q)

    Delta = change

    This method of computing percentage changes contains a small problem. We get different reactions based on where we are on the demand curve. By taking the average of two prices and two quantities across the span we are analysing, we may circumvent this issue by comparing the change in the average rather than the price or amount at the start of the change.

    Whether a change in the price of 1 percent causes a change in quantity demanded of more or less than 1 percent, we have distinct ranges of price elasticities.

    elasticity of demand and supply

    Price-Elastic Demand: As a basic intro to microeconomics,the concept of price-elastic demand should be known to us. This is referred to as a price-elastic demand if it exceeds one. Price changes of 1% result in responses higher than 1% changes in quantity demanded: ΔP < ΔQ.


    Unitary Price Elasticity of DemandIn this situation, a 1% change in price results in a corresponding 1% change in the amount sought.


    Price-Inelastic Demand: Consequently, a 1 percent change in price results in a response of less than a 1 percent change in quantity demanded: delta P > delta Q. This is known as price-inelastic demand.

    Market Equilibrium And Market Intervention

    In principle, a market will naturally reach equilibrium if left alone. Everyone who wants to sell at that price and everyone who wants to buy at that price will be able to close their deals at that price. Supply and demand are exactly equal right now. However, the government may occasionally step in and impose price ceilings or restrictions, collect taxes, or take other actions to change the microeconomic environment.


    Price Ceiling


    A price ceiling is a cap on an item's cost; vendors are not allowed to charge more once it has been set. Price caps are frequently less expensive than market rates. A price cap set at or above market value largely serves as a preventive measure and has no noticeable effects. But if the ceiling is set below market value, there won't be enough goods.


    For instance, if the government decides that 1) people need food to exist and 2) the market price of bread is too high, it may impose a price ceiling.If the government imposes a price ceiling, the quantity requested will exceed the amount delivered, meaning that there will be inadequate bread to fulfil the demand.


    Scarcity is the term for this situation. Because price controls are in place to safeguard consumers' interests, the government must decide whether the situation is preferable for buyers: being unable to afford bread or not having enough bread to go around.


    Price Floor


    A price floor is the opposite of a price ceiling. A price floor is a fictitiously lower minimum price for an item. The price floor is often higher than the market price. Price floors are typically set to aid vendors. For agricultural products, for instance, price floors are occasionally applied. There are instances when the market price is so low that farmers cannot maintain themselves. When this occurs, the government intervenes and establishes a price floor, which might lead to other issues.


    Taxes


    Taxation is another instrument the government may use to affect the market. To discourage the sale and consumption of alcohol, for example, the government might levy a tax on alcoholic beverages sold by restaurants and bars. As is seen in most cases, sellers pass on the increased cost to buyers as much. Sellers incorporate the tax amount into the selling price and make sure they suffer no harm to their profit.


    The supply curve in such cases shifts vertically by the amount of tax levied. Therefore, if the government levies a Rs 5 tax on each bottle of alcohol and the vendors want to add this tax on to the customers, the supply curve will shift upward by Rs. 5. Shops would eventually sell fewer bottles of alcohol at whatever price in order to offset the tax's higher cost.


    In reality, if customers continue drinking at their previous rates, alcohol will now cost Rs. 5 extra for each bottle. But according to the new equilibrium post-tax curves, prices will range between x and (x+5) or (x-5) and x, and the new quantity will be less than the first.

    Consumer’s Behaviour

    According to thetheory of consumer behaviour in microeconomicsis important in the tactics that corporations might use to gain a competitive edge. According to consumer behaviour theory, customers are rational and want to maximise their utility. However, in a monopolistic market, such as the fast food business in many countries, additional variables such as advertising and other promotional activities that the corporation employs as part of its marketing plans significantly influence the consumer's reasoning.


    Furthermore, a variety of factors impact consumer decision-making processes. Marketing communication and culture are prominent among these aspects. The consequence of the marketing communication mix is to encourage impulsive buying, undermining the rationality that the consumer behaviour theory promotes. Additionally, because culture is not uniform, customers' purchasing habits vary among nations due to various cultural orientations.

    Production Cost And Perfect Competition

    There are many economic actors in a fully competitive market, but none has the capacity to establish the market price for a specific product. The market forces of supply and demand entirely regulate the price per unit, and each business in the market must sell its goods at this fixed market price. In perfect competition, marginal revenue (MR) equals the product price and may be represented by a horizontal line (MR = P)Examining the expenses related to creating and selling items


    Fixed costs (FC) are constant outlays regardless of the volume of product generated (Q). Rent and yearly salary are two instances of fixed expenditures. Variable costs (VC) are costs that rise in proportion to the amount of production generated (Q). Hourly and piece rates for labour as well as the expenses of raw materials used in production are examples of variable costs. Total cost (TC), often known as FC + VC, is the total of fixed and variable costs. 


    Average fixed cost (AFC) is defined as fixed costs divided by the total output quantity generated; AFC = FC//Q. AVC is the average variable cost divided by the total amount of product generated; AVC = VC//Q. ATC is the total cost divided by the total amount of product generated; hence ATC = TC//Q. The marginal cost (MC) is the additional cost incurred by producing one more unit of output, MC= deltaC/ deltaQ. All these formulae are a part of advanced microeconomics.


    The MC curve always intersects the AVC and ATC curves at their respective minimum points. AVC or ATC must fall when marginal cost is smaller than the average variable or average total cost. AVC or ATC must rise when the marginal cost exceeds the average variable or total cost. As a result, the lowest point is the only conceivable position at which marginal cost equals average variable or average total cost.


    The break-even point is a particular moment at which the marginal cost of a product or service equals the average total cost of said product/service (MC = ATC). When the MR = P line, at some point, crosses through the aforementioned point, as has been indicated by the black circle on the illustrated graph, the product or service is then marked to be selling at its break-even price because now the marginal revenue equals to the marginal cost of production, and the total acquired revenue equals to the total cost of the product or service in question. In which case, the corporation that is associated will break even: it will not be making any profits, but it will also not be losing any money at all.


    If by chance the MR = P line is somehow above the break-even point, the company will be making a considerable profit for the revenue from each of the units of output that was sold shall be well more than the average cost of producing one unit of that same output, thus total revenue incurred will be higher than the total cost. The company will be running on a loss if the MR = P line is below the break-even point because then each unit of the output will generate progressively less revenue than the average cost of total production, which lowers total revenue below total cost.

    Imperfect Competition And Monopoly

    Imperfect competition is an economic term that describes market characteristics that make a market less than completely competitive, resulting in market inefficiencies and economic value losses. It is a part of both microeconomics and statistics. In the actual world, markets are almost always subject to some degree of imperfect competition. However, the word is often exclusively used to describe markets when seller competition is significantly lower than optimum. 

    When one of the key features of perfect competition is lacking, a situation of imperfect competition arises. Prices in a market with the perfect competition are principally determined by the conventional economic forces of supply and demand. Notably, the stock market may be seen as a constantly imperfect market since not all investors have equal access to information about possible investments. Imperfect competition is widespread when a market structure consists of monopolies, duopolies, oligopolies, or monopsonies (very rare). 

    A scarcity of competing suppliers frequently characterises market arrangements that successfully impair competition. Imperfect competition is common due to exceptionally high entry barriers for new suppliers. The aviation business, for example, has considerable entry barriers due to the extraordinarily high cost of planes. The most extreme form of imperfect competition occurs when a market for a certain commodity or service is a monopoly with a single supplier.

    A provider with a monopoly on the provision of an item or service has practically total pricing control. Monopolies typically offer prices that provide them with significantly higher profit margins than most enterprises. Because there are no other suppliers to compete with, the only provider can charge whatever price it wants for its goods or services.

    Oligopoly And Collusion

    An oligopoly is a sector in which only a small number of businesses exist. No one entity has considerable market domination in an oligopoly. As a result, no one company can raise its prices above what they would be in the absence of perfect competition. In an oligopoly, all enterprises must combine in order to raise prices and gain a larger economic profit. Most oligopolies form in businesses where products are essentially homogeneous and provide about the same value to customers in macroeconomics

    Collaboration is the main cause of oligopolies. Collaboration on a set price is more advantageous to businesses economically than trying to outbid rivals. Oligopolies are able to increase their entrance barriers and safeguard themselves from new prospective competitors by regulating pricing. This is quite significant since it might lead to new businesses offering considerably cheaper pricing, endangering the long-term profitability of the conspiring businesses.

    Antitrust rules, which attempt to stop pricing collusion and protect consumers, are present in the majority of marketplaces. However, businesses have developed strategies for achieving pricing collusion without authorities noticing. For instance, to "respond to competition," businesses could choose a pricing leader entrusted with initiating price increases before other businesses do the same. Companies may also agree to adjust their pricing on certain dates; in such circumstances, the adjustments can be viewed as just a response to broader economic factors like inflationary swings.

    A typical definition of collusion is a secret, illegal agreement or collaboration between two parties to upset the market's stability. People or companies that would typically compete with one another choose to work together and influence the market to acquire a competitive market advantage. An illustration would be when two or more businesses team together to control the supply of a good and set a fixed price that enables them to maximise profits at the cost of other competitors. 

    Different types of collusion exist in different markets. For instance, price-fixing is a kind of collusion that takes place when two oligopolistic businesses agree to establish certain prices for their commodities while still offering the same product in a given market. When there is no other competition, the prices may be raised to maximise profits (price gouging) or drastically reduced to stave off smaller-scale rivals. Price-fixing typically removes rivals and erects impassable hurdles for potential market entrants. 

    In the financial markets, conspiring parties could decide to exchange insider knowledge and benefit from a trading advantage. The ability to join and leave the market before the release of the secret information may be provided through financial market collusion. Business partners may also work together to time their ads. A method like this keeps the consumer from learning all the specifics of a product or the terms of service for their benefit.

    Government Intervention In Competitive Market

    The concepts of free markets are usually misunderstood. It is not that Free markets have no government intervention. Rather, governments intervene into the free market economy to overcome market failure. Government interventions ensure market stability, distribution of resources, a strong market economy, and legal transactions. When markets fail, governments can also take emergency measures like bailouts.

    competitive market

    Inflation And Currency


    For those investors who end up observing soaring corporate earnings and share prices, the sheer amount of inflationary money initially appears to be absolutely terrific, but eventually leads to a general decline in its value. People who are Bond buyers and savers often bear the brunt of it because savings have no virtual value. The fact that the debtors now have to pay less money to be able to satisfy their commitments is favorable news, but it also exponentially damages those who have initially bought bank bonds based on those loans once again. This also heightens the enticement of borrowing, but if interest rates rise up fast, that allure is ultimately lost.


    Rate Of Interest


    Interest rates still continue to be a very potent tool although they are generally employed to otherwise combat inflation. This is so because they may end up strengthening the economy by ultimately reducing borrowing rates. The Federal Reserve should consider reducing the interest rates instead of raising them in order to encourage the relevant companies and consumers to withdraw more loans and make more purchases. On the other hand, this might also lead to forming asset bubbles, which is when huge amounts of money are lost in the blink of an eye, rather than gradually as it is the case with inflation. Rates of Interest or ROI is a third way that the government influences the market.


    The Maryland legislature increased usury limitations in response to rising interest rates in the 1970s so that more mortgages would be accessible. After four years of arduous work, Apple Computers went public in December 1980, rewarding its founders handsomely for their efforts. Pharmaceutical firms spend millions on marketing fresh medications. How much money do they make back in total? These narratives illustrate the financial justifications for interest payments and the connections between facility and equipment investments, interest rates, and anticipated return on investments.


    Bailouts


    The American government's readiness to assist struggling industries in the 2008–2010 financial crisis is well recognised. As part of advanced microeconomics theory, prior to the crisis, this reality was well acknowledged. Although the 1989 savings and loan crisis and the 2008 bank bailout were strangely similar, the government has a history of salvaging non-financial companies like Chrysler (1980), Penn Central Railroad (1970), and Lockheed (1971). The remarkable strategy of the government is that it did not bailout these companies based on direct investments based on the Troubled Asset Relief Program(TARP) but did so by the method of loan guarantees.


    These corporations would ultimately shut down all operations and functions and eventually sell off their acquired assets to more profitable undertakings, under normal market conditions with the intention to pay off their debts and, if at all possible, shareholders. Luckily, the government uses this authority only to protect the most significant companies, including the ones in the banking, insurance, aviation, and auto industries. Fortunately, the government only uses this authority to protect the most important companies, including those in the banking, insurance, aviation, and auto industries.


    Subsidies And Tariffs


    From the taxpayer's viewpoint, tariffs and subsidies are the one and the same. A subsidy is when the government levies taxes on the general populace and distributes the proceeds to a particular industry in order to increase its profitability. With a tariff, the government imposes taxes on imported goods to raise their prices, enabling domestic providers to mark their prices. These two activities have an immediate effect on the market.


    Financial institutions such as banks have a really strong incentive to offer advantageous terms to companies that get a certain level of assistance from the government. Even if the provided government assistance is the company's one and only source of some competitive advantage, the favorable treatment and enough financing provided by the government will eventually result in the additional money and resources being finally invested in the company.


    Other competing industries that are more globally competitive will be impacted by this drain of resource and now shall need to work harder and smarter to get finance. When the government is somehow a company's primary source of income, the influence can and will be more prominent and has been known to result in involved contractors being overcharged and delays in ongoing projects.


    Regulation And Corporate Tax


    Any absence of any kind of opposition from the business community to the bailout of any specific sectors may explain because they are uncertain of when their home sector would need some kind of assistance. Taxes and regulations are generally a concern for Wall Street, however. This is especially true because while yes, regulations and taxes may end up having a negative effect on profitability, subsidies and tariffs may provide a firm a competitive edge.

    Why Online Microeconomics Course Is Better Than Offline Microeconomics Course?

    Technology's development has fundamentally altered how education is delivered. Onlinelearning has developed into a flexible teaching style that allows students to access study materials from the comfort of their homes quickly. Online learning also supports students in choosing their own study pace and offers a great chance for those unable to enrol in regular classroom settings.


    An online microeconomics course is much better as you can attend the classes at your own pace. You don’t need to go by the strict syllabus of any board. You get the best teachers and can rewatch any lesson. They also solve each and every doubt. It is usually cheaper compared to offline courses.


    Many students take online courses to prepare for a certain topic for entrance and other such exams. With growing technology all over the world, these macroeconomics courses onlineare just an affordable ticket to easy and simple knowledge at your fingertip.

    Microeconomics Course Syllabus

    The thing to learn Microeconomics course includes:

    1. Supply and Demand
    2. Consumer’s Theory
    3. Producer Theory
    4. Welfare Economics
    5. Monopoly and Oligopoly
    6. Topics in Intermediate Microeconomics
    7. Equity and Efficiency

    Projecting Accelerating Microeconomics Industry Growth In 2022-23

    The study finds that the extension of the European war, rising commodity prices, supply-side disruptions, and gloomy global growth forecasts are the main threats to India's economic recovery. The survey's participants believed that the trajectory of inflation, the size of interest rate increases necessary to preserve price stability, and the effects of higher rates on household consumption and investment demand would influence the outlook for the world economy in 2023.


    A recession in the long term cannot be completely ruled out, however, as negative risks to growth are increasing, and there is significant doubt surrounding the U.S. Federal Reserve's capacity to stabilise inflation levels.


    According to The Hindu, due to geopolitical unpredictability and its effects on the Indian economy, the growth prediction has been revised downward from the 7.4 percent estimate in the previous survey round (April 2022).


    While industrial and services sectors are expected to increase by 6.2 percent and 7.8 percent, respectively, the median growth prediction for agriculture and related activities has been set at 3 percent for 2022–2023.


    "As seen by the intensifying inflationary pressures and rising market uncertainty, the Indian economy is not immune to global turbulence. The delegates noted that these factors are likely to prolong the recovery and are putting pressure on India's economic prospects,” it read.

    The Accelerating Demand Of Microeconomics In India

    Economics is an evergreen subject with high national and global demand because of its significance in daily life. Economics is a very interesting subject that deals with a wide range of issues. Career options in economics, as mentioned in Kopykitab are positions such as economist, financial risk analyst, accountant, investment analyst, financial consultant, and data analyst.

    Microeconomics Specialist Salary In India

    Employees with knowledge of microeconomics make an average salary of 23.5 lakhs, with most earnings between 23.1 lakhs and 25.0 lakhs, as said in 6figur.

    Factors On Which Microeconomics Specialist Salary In India Depends

    The salary of a Microeconomics specialist salary depends on a number of factors like:

    1. Mode of education

    2. University passed out from

    3. Working experience, etc

    Microeconomics Specialist Starting Salary In India

    In India, a microeconomist's beginning salary typically ranges from 5.1 lakhs to 42.5 lakhs (per year). A minimum of two years of experience are needed to become a microeconomist.
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    FAQ on Microeconomics Courses

    Which instances of microeconomics are there?

    Because a product's price has gone up, demand in a certain market has decreased. Another illustration is a company expanding its resources to provide additional items.

    Which three principles of microeconomics dominate?

    The three key ideas are supply and demand, consumer behaviour, and income levels. The greatest research has been done on these ideas for tracking microeconomic data.

    Simply put, what is microeconomics?

    The acts and conduct of families and enterprises are the main topics of microeconomics. Microeconomics demonstrates the fundamental movement of resources, money, products, and services.

    What subject areas does microeconomics cover?

    Microeconomics addresses issues related to how families and companies interact. The primary subjects are supply and demand, equilibrium, competition, profit maximisation, and opportunity cost.

    Is Opportunity Cost Real?

    The financial accounts of a corporation do not immediately reflect opportunity costs. However, from an economic perspective, opportunity costs remain quite significant. Opportunity cost is a somewhat abstract idea, though, so many businesses, executives, and investors neglect to consider it while making daily decisions.

    What four distinct client purchase behaviours are there?

    There are four different forms of consumer behaviour: complicated buying behaviour, dissonance reduction, variety seeking, and habitual buying behaviour. The sort of product a customer requires, their degree of engagement, and the variations across companies all influence the many forms of consumer behaviour.

    What kind of customer behaviour would that be?

    Take choosing a city getaway for two as an illustration of consumer behaviour. It could need substantial decision-making for someone just starting to date, but it might just require minimal decision-making for a couple dating for at least five years. 

    Making a reservation at a restaurant is another instance of customer behaviour. Scheduling a reservation for a night out with friends just takes a short amount of time; however, making one for an anniversary or a marriage proposal takes more thought.

    What's the deal with inflation?

    The widespread consensus is that too much or too little inflation damages an economy. Many economists support a medium ground of 2 per cent annual inflation that is low to moderate.

    In general, rising inflation is bad for savers since it reduces the purchase value of their savings. However, the fact that their outstanding loans' inflation-adjusted values decline over time might be advantageous to borrowers.

    Explain the effect of a rightward shift of both the demand and supply curves on equilibrium price and quantity.

    When the supply and demand curves for a given good or service move in the same direction or climb simultaneously, the equilibrium amount of that good or service will likewise increase. The equilibrium price, however, could or might not be affected.

    What kinds of jobs can you get with a degree in microeconomics?

    A degree in economics may open the door to various fascinating — and frequently highly-paid — occupations. No matter if you work in the public or private sectors, having the capacity to understand the elements influencing economic decision-making is a highly valued talent.

    Do our rivals have any plans to look into us?

    That threat is probably real right now. But there are wonderful choices for countermeasures that we can use. As usual, prevention is preferable to treatment.

    What Is a Perfect Competition Example?

    Consider a farmers' market where every seller sells the same brand of jam. Since they all use the same recipe and charge the same price for their products, there is little difference between them. Sellers are few and can freely engage in the market without any restrictions at the same time. In this scenario, customers would be completely aware of the product's formula and any other pertinent details.

    Why Is Inflation Currently So High?

    The U.S. and global inflation rates in 2022 reached their greatest levels since the early 1980s. Although there is no one cause for the sharp increase in global prices, several factors combined drive inflation to such high levels.

    What are some typical economic job paths?

    A profession in economics might be pursued as a trader, data analyst, or financial analyst in a bank or other financial organisation.

    What is an illustration of flawed competition?

    In Monopoly, one business has outgrown every rival and is now the sole supplier in the market. It can regulate demand by adjusting supply and prices.

    What distinguishes perfect from the imperfect competition?

    In a market with perfect competition, all providers engage in fair competition. Contrarily, competition is vulnerable to imbalances in imperfect markets where businesses do not compete on an even playing field.