Last Updated Feb25, 2023
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EXECUTIVE DIRECTORS AND VOTING POWERS
www.theaimers.org.patelvastralaya.com
ADMISSIONS RESEARCH COLLEGES DIVISION AND DEPARTMENT COURSES FEES AND FUNDING ALUMINI FILMING APPLYING TO
MICRO ECONOMICS
MICRO ECONOMICS
One goal of microeconomics is to analyze the market mechanisms that establish relative prices among goods and services and allocate limited resources among alternative uses. Microeconomics shows conditions under which free markets lead to desirable allocations. It also analyzes market failure, where markets fail to produce efficient results.
While microeconomics focuses on firms and individuals, macroeconomics focuses on the sum total of economic activity, dealing with the issues of growth, inflation, and unemployment and with national policies relating to these issues.Microeconomics also deals with the effects of economic policies (such as changing taxation levels) on microeconomic behavior and thus on the aforementioned aspects of the economy.Particularly in the wake of the Lucas critique, much of modern macroeconomic theories has been built upon microfoundations—i.e. based upon basic assumptions about micro-level behavior.
YOU WILL LEARN
Microeconomics is a branch of mainstream economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.Microeconomics focuses on the study of individual markets, sectors, or industries as opposed to the national economy as whole, which is studied in macroeconomics
The price of commodities, such as gasoline, fluctuates due to supply and demand, a key concept in microeconomics.
PRINCIPLES OF MICROECONOMICS :This introductory undergraduate course covers the fundamentals of microeconomics
Do you already know what you want to study? Have you explored all our courses in the subject areas which interest you? Make sure you really know your options and don’t immediately go for the obvious choice. The most inspiring course may be something you didn’t know existed!
The program aims to give the students a solid grounding in modern economic theory and accompanying skills necessary for independent and critical thinking which will allow them to acquire an understanding of the Indian and the world economy.
ECONOMIC MODEL
ECONOMIC MODEL
Simplified version of real life.
Assumption
SUPPLY
DEMAND
How to check the validity of old model?
Direct method : Test the Assumption.
Indirect method : Test the implications..
Ex. model of a profit maximizing firm.
ASSUMPTION:
Only goal of firm is to maximize profits.
IGNORES : Gaining reputation, obtaining power etc.
IGNORES : Agency problem : Principle agent problem.
QUESTION :How to check the goal to maximized the profit?
P < AVC
AVC =C/Q ie. FIRMS ACTUALLY SHUT DOWN
"EMPIRICAL ANALYSIS VERY IMPORTANT"
COMMON FEATURES OF ECONOMIC MODELS
COMMON FEATURES OF ECONOMIC MODELS
THE CETERIS PAREBUS ASSUMPTIONS :
All other things being the same .
wages of textiles workers .
Cotton t shirt Mkt
Wages of textile workers
cotton prices
weather
consumer Income
CONST=SOME INS-NOT EVEN MENTIONED
Energy prices
Prices of lenent t-shirts.
Consumer testes
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