JC Economics Tuition Notes
Introduction to Microeconomics
Microeconomics involves the study on how the individuals, the firms and the society will conduct their economic activities with the scarce resources they possess to maximize their gains seen in terms of satisfaction, profit and welfare gain.
It involves the application of economics principles to explain how microeconomics entities make economics decision on their economic activities under the constraint of limited resources and unlimited wants so as to maximize their gains.
Main Concerns of Microeconomics
The main concerns of microeconomics covers the notion of maximization, concept of efficiency and concept of welfare which can be classified as the main aims of economic entities like the individuals, the firms and the society.
Notion of maximization
The notion of maximization can be seen from how the economic entities will utilize their resources to maximize their gains which can be seen in terms of utilities from consumption, profit for the firms and welfare gain measured in terms of net benefit gain.
Concept of Efficiency
The concept of efficiency can be seen from how the firm’s capacity to utilize resources at the lowest unit cost of production or in terms of the maximization of the output produced.
Concept of Welfare
The concept of welfare can be measured on the basis of the individuals or the society. From the individual perspective, the welfare of the consumer is seen in terms of consumer welfare while
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