Question

State with reason whether you agree or disagree with the following statement:

Scope of micro economics includes only the theory of product pricing.

Answer 1

I disagree with this statement.

Reason:

The scope of microeconomics extends beyond product pricing.
It includes the theories of consumer behaviour, production, cost, factor pricing (wages, rent, interest, profit), and product pricing. Thus, microeconomics studies the behaviour of individual units of the economy, not only product pricing.