Microeconomics’ objective is to analyse market mechanisms which establish relative prices amongst services and goods and how limited resources are allocated amongst numerous alternative uses. In case of market failure when markets fail to produce efficient results Microeconomics analyses the circumstances and describes theoretical conditions essential for perfect competition. Significant fields of study in microeconomics comprise markets under asymmetric information, choice under uncertainty, general equilibrium and economic applications of game theory. Elasticity of products is also a very significant topic in microeconomics.
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