Micro Economic Models

Overview

Microeconomics studies aspects of the eonomy by focusing on the choices and actions of agents within the economy. It primarily focuses on two such agents: consumers and firms.

Models

• Choice : describes the theory that tries to explain and/or predict the choices that agents in the economy make. It primarily used to model consumers in the economy, but aspects of the theory can also be relevant to understanding the choices of firms.
• The Firm : models the behaviour of firms in the economy, where firms are broadly conceived to be the producers of goods and services.
• Markets - are a theoretical construct, where producers and consumers meet and make exchanges of goods and services for money.