Answer to Question #210519 in Microeconomics for hiru

Question

       State any two uses of the study of microeconomics

Answer 1

1). Microeconomics helps in indicating the way monopoly contributes to the resources being allocated ineffectively, hence this contributes to losses such as economic efficiency and welfare.

2). Microeconomics similarly makes inevitable and significant policy recommendations for regulating monopoly in order to gain maximum welfare or economic efficiency.