So micro economic theories study resource allocation, product and factor pricing, economic efficiency. Micro economics may be defined as that branch of economic analysis which studies the economic behaviour of the individual unit, may be a person, a particular household, or a particular firm. It is a study of one particular unit rather than all the units combined together.
The fields covered by micro economics are (i) theory of product pricing, (ii) theory of factor pricing and (iii) theory of economic welfare. Microeconomics is also referred to as ‘Price Theory’. Micro economics is of three types like (a) Microstatics (b) Comparative microstatics and (c) Microdynamics.