Scope of ‘Micro Economics’ includes mainly three theories.
(1) Theory of product pricing
(2) Theory of factor pricing
(3) Theory of Economic ***
(1) In Theory of Product Princing, price determination of consumption goods is studied which includes both demand as well as supply sides.Demand side studies the behavior and consumers while in supply side, production cost and production conditions are included.
(2) In Theory of Factor princing, Price determination of Factors of production (i.e rewards to factors for their contributions in production) is studied.
(3) Theory of Economic **, is the central point of micro economic analysis in which it is studied how to distribute the given quantities of goods and services among different consumers so as to maximize the economic **.
