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Discuss Some of the Fundamental Differences Between Microeconomics and Macroeconomics

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Essay

Discuss some of the fundamental differences between microeconomics and macroeconomics.


Definitions:

Output

Refers to the total amount of goods or services produced by an entity in a given period.

Production Function

A mathematical relationship that describes the maximum amount of output that can be produced from a given set of inputs under certain technology.

Returns To Scale

The rate at which production output increases as a result of a proportional increase in all inputs or resources.

Marginal Product

The increase in output resulting from a one-unit increase in the input, keeping all other inputs constant.

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