Presentation on importance of microeconomics

1. SUBMITTED BY TERESA BOHARA SUSHILA KHADKA SUSAN KOIRALA TRIBHUWAN PANDEY SUBMITTED TO GYANMANI ADHIKARI

2. CONTENTS INTRODUCTION OF MICROECONOMICS IMPORTNCE OF MICROECONOMICS USES IN BUSINESS DECISION MAKING

3. To understand the operation of an economy To provide tools for economic policies To examine the condition of economic welfare Efficient utilization of resources Useful in international trade Useful in decision making ; optimal resources allocation Basis for prediction Linear programming Price determination Importance of microeconomics

4. To understand the operation of an economy Your Text Here Gives us kno wledge of free enterprise economy Helps in making decisions such as how much to produce, what to produce, for whom to produce etc Explains the conditions of efficiency in both production and consumption

5. Helps to ascertain the government policies on the resource allocation and pricing It helps to impose tax rates by analyzing the demand and supply factors Also helps to examine the implications and effectiveness of the government policies To provide tools for economic policies

6. Helps to maximize the social welfare Welfare economics is related to the maximization of social welfare which is possible only under perfect competition Helps in formulation of economic policies which are meant for promoting economic welfare and efficiency in production To examine the conditions of economic welfare

7. Microeconomics is helpful in efficient management of available resources of a country Micro economics is utilized to explain the gains from international trade , balance of payment disequilibrium and determination of foreign exchange rates It helps to make the rational decisions to both producers and consumers in an economy Micro economics provides the way of efficient utilization of available resources. Efficient utilization of resources

8. Microeconomics helps to determine the gains from international trades by analyzing the relative elasticity of demand for each others products Helps to determine the rate of foreign exchange by comparative study of demand and supply factors Useful in international trade

9. it helps business to achieve maximum production with the given amount of resources Business firm can make decisions in demand analysis, cost analysis and methods of calculating prices Useful in business decision making

10. The limited resources of firms can be optimumly utilized by choosing the best alternative which is possible with the help of microeconomics Microeconomics also helps producers to select the highly efficient and least cost production technique. Helps in optimal resource allocations

11. provides basis for predicting future course of events by analyzing the various factors such as demand and supply etc. Basis for predictions

12. It provides the technique of linear programming by which a producer takes the numbers of important decisions Linear programming also investigates the best possible production process among the alternative production processes to attain the maximum income Linear programming

13. It is useful in price determination, known as factor and product pricing. Prices are determined on the basis of demand and supply forces which are the main part of microeconomics. Price determination