Microeconomics is the study of human action and interaction. The most common uses of microeconomics deal with individuals and firms that trade with one another, but its methods and insights can be applied to nearly every aspect of purposeful activity. Ultimately, microeconomics is about human choices and incentives.
The basic assumptions of microeconomics as a science, however, are neither model-based nor quantitative. Rather, microeconomics argues that human actors are rational and that they use scarce resources to accomplish purposeful ends. The dynamic interaction between scarcity and choice helps economists discover what humans consider valuable. Exchange, demand, prices, profits, losses and competition arise when humans voluntarily associate with each other to achieve their separate ends. In this sense, microeconomics is best thought of as a branch of deductive logic; models and curves are simply manifestations of these deductive insights.
The economy of today has turned out to be very competitive, and, therefore, a microeconomic essay should have serious considerations. Such a paper is designed to make a student look more keenly on the issues under consideration. A student is forced to dig in deeper into the information, and here, they have an opportunity to grasp the concepts that they have learned and be able to apply them to a topic that is realistic.
Academic level: Bachelor
To combat this disturbing trend, economists have argued that the cost of production should include the costs of pollution. These costs are too numerous to list in full but include: – The impact pollution has on human health, the effect it has on property value, the effect it has on recreational events, the effect it has on wildlife habitats. Here is an example of how this cost consideration would work:
It is vital to invest time in researching and selecting the topic that suits your skills and knowledge best. Spending time on formulating, research and crafting the right question might seem like a waste of time, but it is an investment that will save you effort in the long run. This article has gathered a list of common topics and areas that micro-economic papers focus on. Some of these topics have a broad scope, whereas other topics are narrow and focused.
Microeconomic assessments of markets revolve around product or service offerings being bought by those with the “power” (e.g., resources) to purchase; it is the economic model of supply and demand. Without question, concepts about markets are relevant to technical (and other) executives who face the day-to-day requirement of generating value for the firm, and making decisions on resource allocation to product and/or service offerings, given a specific demand. In general, this model posits there is a price of a particular product/service where the quantity demanded will equal the quantity supplied by all producers (assuming a competitive marketplace), resulting in an equilibrium of price and quantity. This market behavior is based on the idea that changes in either demand or supply will modify the price and quantity at which equilibrium occurs. This assumes that increases in demand are associated with an increase in price, given a constant supply (“a higher equilibrium point of price and quantity”), while lower demand with constant supply result in a decrease in price and quantity equilibrium. Similarly, increases in supply with constant demand results in lower equilibrium price at higher quantity, and lower supply given constant demand results in higher price and lower quantity. Table 2.1 summarizes these assumptions, and Figure 2.1 shows the demand (conceptualized as a price-quantity) curve.
Markets are also described as being “efficient,” in that the allocation of goods and services are both dynamic and self-correcting. The ability of sellers of goods and services to create change in the marketplace (i.e., introduce new goods or services) is easily facilitated; the ability to introduce new goods at a given price (dynamic) allows a supplier to begin to establish the equilibrium position without any monolithic authoritarian structures as a sine qua non. Moreover, price establishes the hurdle by which purchasers will or will not exercise the power to buy; if there is a low (or no) amount of purchasing (i.e. low or no demand), price will adjust (“self-correct”) in order to meet the needs of the marketplace. While markets and competitors are indeed not perfect, and interventions by governments and market influence by suppliers exist, the economic model of supply and demand provides the paradigm by which most firms are guided when considering their respective value chains and products.
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Microeconomics studies the economic behavior of individual isolated units of the economy, such as a specific person, a household, a company or an industry. This field of study deals with factors that influence individual economic choices. Actually, it’s the study of markets and their key elements – supply and demand at the personal and corporate level and scarcity of goods. Microeconomics analyzes the markets and determines the prices for services and goods that best allocate limited resources.