Micro-Economics Concept Evolution
In 1933, Ragner Frisch divided economics into two different section as microeconomics, macroeconomics. The term microeconomics is derived from Greek word ‘Mikros’; means very small or narrow. Micro economics sees the whole economy at micro level. It discusses how people deals with money in individual perspective. Microeconomics normally deals with the analysis of small individual units of the economy such as individual consumers, individual firms and individual markets.
Microeconomics works as the branch of economic knowledge which concern with individual production, consumption, distribution and deal with particular aspects of an economy and the effects of individual decisions, individual behavior, individual demand, individual price line, individual expense and revenue, individual savings.
Many economist gives in particular definition in different aspect. According to K.E.Boulding,“Microeconomics is the study of particular firm, particular household, individual price, wages, incomes, individual industries, particular commodities.”
Professor Ragan and thomas said,” Microeconomics is the study of the individual units that comprise the economy.”
Economist Handerson and Kuant also said, “Microeconomics which is study of the economics actions of individual and well-defined groups of individuals.”
From those definition,We get some features such as-
👉Microeconomics deals with individual economic variables.
👉It applied to operational or internal issues.
👉It concern about individual aspect
👉It help to identify Individual economic condition.
👉It covers demand, supply,product pricing,factor pricing, production, consumption, economic welfare etc.
Contributor: Umma Rajuly Erina
From Mawlana Bhashani Science & Technology University