Scope of microeconomics
Micro economics studies:
- Theory of product pricing with its two constituents, namely the theory of consumers behavior and the theory of production and costs.
- The theory of factor pricing with its four constituents, namely theories of wages, rent, interest and profits.
- Theory of economic welfare.
Microeconomics is sometimes referred to as ‘price theory’, because prices are the core of microeconomics.
Note: This is published for the internal use (of St. Philomena's College students) only and hence requires verification.
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