Answer: Disagree.
The scope of micro economics is wide and includes:
- Theory of product pricing: how prices of individual goods are determined by demand and supply (theory of demand and theory of production and costs).
- Theory of factor pricing: how rewards of the factors of production – rent, wages, interest and profit – are determined (theory of distribution).
- Theory of economic welfare: efficiency in production, consumption and distribution, i.e. optimum allocation of resources.
- Other areas such as consumer behaviour, market structures and equilibrium of a firm and industry.
Therefore micro economics does not include only the theory of product pricing.
