The correct answer is Option 1: Producer’s equilibrium
- Microeconomics studies individual economic units such as consumers, firms, and markets.
- Producer’s equilibrium refers to the point where a firm maximizes its profit or minimizes its cost, which is a fundamental concept in microeconomics.
Why not the other options?
- Economic Aggregate → This term refers to total economic variables like national income, inflation, and employment, which are studied in Macroeconomics.
- National Income → This is a Macroeconomic concept as it deals with the total income of a country rather than individual firms or consumers.
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