# Questions tagged [microeconomics]

Microeconomics is a branch of economics that studies the market behavior of individual actors (usually firms and consumers) and the aggregation of their actions in different institutional frameworks (usually the market).

1,346 questions
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### Some manipulations of the cost and factor demand functions

I am trying to understand a few manipulations of the conditional factor demand $z(w,q)$ and cost function $c(w,q)$, were $w$ are input prices and $q$ is a given quantity (the reference is Mas-Colell, ...
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### Difference between Giffen and inferior goods. Why aren't all inferior goods Giffen goods?

What is the difference between an inferior good and a Giffen good? Are the two following definitions for an inferior good equivalent? Def 1: An inferior good is a good for which the demand decreases ...
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### Does Preference have a Hierarchy? A Silly Question

I have what is probably a very silly question, but I have gone down the rabbit hole and can’t get back out..... Is there is a hierarchy of preference, and within each level of choice do we reset the ...
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### Why does a homothetic function have constant ratio of marginal products along rays?

A homothetic ordering is defined as $x \succeq y \Rightarrow \lambda x \succeq \lambda y \qquad \forall \lambda >0$ where $x,y \in \mathbb{R}^n$ Then, any differentiable function representing ...
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### Convexity of indifference curve

The convexity of an indifference curve results from the fact that the absolute value of its derivative, which is the marginal rate of substutution is decreasing. But why do we say that it's convext to ...
### Can $u(x) = \sqrt{x_1 x_2} + \sqrt{x_3 x_4}$ be solved by Kuhn–Tucker conditions?
Consider $\max_{x_1, x_2, x_3, x_4} u(x) = \sqrt{x_1 x_2} + \sqrt{x_3 x_4}$ s.t. $\; p_1x_1 + p_2x_2 + p_3x_3 + p_4x_4 \le w$ I know we can solve the max problem through separately considering ...