1. Price Theory
Each economic system has to make the decisions regarding what is to be produced, how it is to be produced and how the resoources be allocated amongst the different competing uses. All such, under capitalism, is performed with the help of "Price Mechanism", i.e., those goods will be produced by the producers which maximize their profits; those techniques will be adopted which minimize their costs of production and; the resources will be allocated in those uses where the resource...
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As Micro means the millionth part of anything. Thus, "Microeconomics is that part of Economic Theory which deals with individual units of economy like consumer, firm and factors of production". Accordingly, the body of economic principles dealing with the behaviour of economic agents of the economic system like consumer, firm and factors of production is called Microeconomic Theory.

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