Microeconomics is a branch of economics that deals with the behavior and decision-making of individual consumers, firms, and industries. It studies the following key areas:

1. Consumer behavior: How individuals make choices about what goods and services to buy, and how their decisions are influenced by factors such as income, prices, and tastes.

2. Production and cost: How firms determine the most efficient methods of producing goods and services, and how they make decisions about what to produce and how much to produce.

3. Market structures: The different ways that markets can be organized, including perfect competition, monopolistic competition, oligopoly, and monopoly, and how these structures influence the behavior of firms and consumers.

4. Pricing and market power: How the prices of goods and services are determined in different market structures, and how firms with market power can influence prices and affect competition.

5. Distribution of income: How the total income of an economy is divided among individuals, and how factors such as education, skills, and technological progress can affect the distribution of income.

The goal of microeconomics is to understand and explain the behavior and decision-making of individuals and firms, and how these decisions contribute to the overall functioning of the economy. Microeconomic analysis can also inform government policies aimed at promoting competition, consumer protection, and economic efficiency.

Economic tendencies in microeconomics can have a significant impact on both the private sector and the government. Some key relationships between microeconomic tendencies and the private sector and government include:

1. Market structure and competition: The private sector can be affected by the structure of markets, such as monopolies, oligopolies, and competition, which can influence the behavior of firms and the prices and quality of goods and services. The government can regulate market structure and competition to promote fair competition and protect consumers.

2. Consumer behavior: The private sector is influenced by consumer behavior, such as changes in preferences, income, and prices. The government can influence consumer behavior through policies such as taxes, subsidies, and regulations.

3. Firm behavior: The private sector is influenced by the behavior of firms, such as investment decisions, production decisions, and pricing strategies. The government can influence firm behavior through policies such as taxes, subsidies, and regulations.

4. Market failures: The private sector and the economy as a whole can be impacted by market failures, such as externalities, public goods, and information asymmetries, which can result in suboptimal outcomes. The government can address market failures through policies such as regulation, taxes, and subsidies.

5. Labor market: The private sector is influenced by the labor market, including factors such as wages, hours of work, and employment. The government can influence the labor market through policies such as minimum wage laws, labor standards, and unemployment benefits.

Overall, microeconomic tendencies can have a profound impact on both the private sector and the government, and the specific nature of these relationships can depend on various factors, such as the type of economy, the role of the government, and the specific market conditions.

In this part, I will focus in the analysis of behavior of economic agents at an individual level, as much as the study of markets. The main focus of microeconomics is on the of consumers and firms habits.

Example of questions to think about applying to a developing country (focused in Peru): 

• The evolution of consumption in Peru over the last 10 years: Trends in consumer behaviour.
• Are mergers related to productivity in Peruvian firms?
• Opportunities for Peru competition policy.
• Are Peruvian oligopolistic markets really oligopolistic? Searching evidence of strategic interdependence.
• Can the dominant firm model be applied to the furniture retail industry in the Peru?
• Conditions for the existence of a knowledge firm. Facilitators of knowledge creation within the firm in Peru.
• Characteristics of the innovative organisation in Latin America.
• Are innovative firms in Peru more innovative than in Latin America?
• The impact of the Peruvian regional policy on Cusquenian small and medium enterprises (SME’s)
• The energy market in Peru: A microeconomic approach.
• The impact of regulation in Peruvian industries: The case study of Quimica Suiza.
• Does size affect firm profits? Evidence from manufacturing firms in Peru.