Questions and Answers
What are some key concepts in microeconomics?
Key concepts in microeconomics include supply and demand, market structures, elasticity, consumer behavior, production costs, and pricing strategies.
How does microeconomics differ from macroeconomics?
Microeconomics focuses on individual economic agents such as consumers, firms, and industries, while macroeconomics examines the economy as a whole including aspects like inflation, unemployment, and economic growth.
Explain the concept of opportunity cost in microeconomics.
Opportunity cost refers to the value of the next best alternative that is given up when a decision is made. It is a fundamental concept in microeconomics that helps in analyzing trade-offs and decision-making.
