Microeconomics has much theoretical and practical importance. A Due to this even the neo-classical economists had concentrated on micro-economics. Although Keynes popularized macroeconomics, the importance of microeconomics has not declined. The importance of microeconomics can be analyzed on the basis of the following headings:
  1. Understand the working of the economy
  2. Efficient allocation of resources
  3. Useful in business decision-making
  4.  Study of human behavior
  5. Examine conditions of economic welfare
  6. Formulation of public policies
  7.  Solution of contemporary micro-economic problems
  Loading . . .