The subject matter of microeconomics is mainly confined to price theory and resource allocation. Microeconomics seeks to obtain solutions to the basic economic questions such as what to produce ? How to produce ? How the goods are to be distributed ? How the resources are to be efficiently allocated to production and consumption etc. Thus the scope of micro economics is :
(a) Product pricing,
(b) Factor Pricing,
(c) Efficiency in production,
(d) Efficiency in consumption,
(e) Over all economic efficiency.
In other words, under microeconomics, we study, Theory of Demand, Consumer Equilibrium, Production function, Law of supply, Market Equilibrium, Price determination, etc.
