Marginal methods - • It avoids the problem of long-term...

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Marginal methods Microeconomics makes use of marginal methods for analyzing economic problems. Marginal changes arise out of small adjustments in economic activities. The concept of margin is equivalent to the first derivative method of mathematics. Finally, microeconomics is essentially a price level analysis . It attempts to study the effect of small variations in prices on individual behavior.
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Unformatted text preview: • It avoids the problem of long-term shifts in the total economic conditions, such as in the levels of real national income. • Microeconomics makes assumptions about the constancy of the size of national income and employment. • As a result of this, microeconomics becomes a partial equilibrium analysis ....
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This note was uploaded on 11/26/2011 for the course ECONOMIC ec 201 taught by Professor - during the Fall '10 term at Montgomery.

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