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Scope/Subject matter of Micro Economics

Following are the subject matter of micro economics:

1. Individual economic activities: Micro economics deals with the economic activities of individual in a society. How to earn money and how to expend the earned money, different problems regarding these activities and how to solve these problems, all these are discussed in micro economics.

2. Determining the prices of commodities: The main task of micro economics is to discuss how prices of commodities in the market is determined through the interaction of demand and supply of commodities, how much goods and services are transacted at those prices, everything is discussed in the micro economic analysis.

3. Determining the input price: The four major factors of production are land, labor, capital and organization. The returns for the factors are rent, wage, interest and profit. How to determine rent for land, wage for labor, interest for capital and profit for organization are discussed in micro economics.

4. Analyzing different market structures: On the basis of competition markets are classified of two types:
i. Perfect competition market.
ii. Imperfect competition market.
Imperfect competition markets are of different types like
i. Monopoly
ii. Duopoly etc.