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Yogita Ingle 7 years ago
| Microeconomics | Macroeconomics |
| It is study of individual economic units of an economy. | It is study of the economy as a whole and its aggregates. |
| It deals with individual income, individual prices and individual outputs, etc. | It deals with aggregates like national income, general price level and national output, etc. |
| Its central problem is price determination and allocation of resources. | Its central problem is determination of level of income and employment. |
| Its main tools are demand and supply of particular commodity/factor. | Its main tools are aggregate demand and aggregate supply of the economy as a whole. |
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Gaurav Seth 7 years ago
For producer's equilibrium MR should be equal to MC and MC should cut MR from below, i.e, the slope of MC must be positive at the point of intersection. Such a point indicates the level of output where the firms earns maximum possible profits. On the other hand, if the MC cuts the MR from above, i.e. MC is negatively sloped, then this indicates that profits can be further increased by increasing the level of production. Hence, it would not be the point of profit maximisation.
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Bokaro Gamers 7 years ago
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