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Defining what microeconomics is –
It is a branch of economics that deals and studies decision made by an individual person, a firm, an industry or a government, etc. It does provide a student with clear understanding and all theoretical analysis of such behavior. It also considers the effects of such behavior in the present and future markets for demand and supply of goods and services. Microeconomics is the study of individual behavior to make certain decisions that affect product and supply in the market.
Free Rider in Economics –
It is a situation where certain individuals in population have or does consume more amount of resources commonly available or have to do fewer payments for the total cost of that common resources. For example in a firm dealing on brokerage, free rider’s situation occurs when a client is allowed to buy shares without paying up for them and then sell them and get profits from sale which is profitable in both ways, by paying less and by gaining revenues on sales.
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