Nature of the Consumer

Nature of the Consumer - optimize on their transactions. f....

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Nature of the Consumer Meaning of Microeconomics: a. The term micro suggests an infinitesimally minute quantity. b. Microeconomics deals with the smallest economic units. c. It is concerned with the behavior of an individual consumer or an individual household or an individual business firm. d. There are other interesting features of the micro branch of economics. e. It attempts to analyze the behavior of consumers and producers as they tend to
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Unformatted text preview: optimize on their transactions. f. Optimization means simultaneous maximization and minimization . g. As a consumer one attempts to maximize utility or satisfaction and minimize expenditure . h. As a producer one attempts to maximize profits and minimize cost of production ....
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