Behavior, Choices and Options
Microeconomics has to do with the actions, decisions and options of individual stars. There are 4 main parts of microeconomics:
Individual Behavior
Supply and Need
Concept of the Firm
Competitors
There are 2 major assumptions made in classical economics:
- that we are sensible stars and we constantly optimize our appropriation decisions
- Resources are limited and alloting them in one of the most effective way is crucial
Both these assumptions are being challenged with more nuanced thinking.
Individual Habits
In classical economics we are entirely sensible like Spock when it involves our acquiring choices and budget allotments.
Our behavior is graphically stood for by a spending plan constraint line and our choice contour. We enhance our purchasing power relative to our choices where the two meet …