 That gives explanation of now microeconomics and macroeconomics. So here we are going to explain what is microeconomics. As we see the word microe that was derived from a Greek word again with the phonics of the microe but with different spelling and here microe means the small unit or the small entity. So with the inclusion of this micro the combination of micro with economics it came that school of the thought or that system or rules or the laws that were utilized for the management of small units of the economy and these small units can be the consumption unit these small units can be the production unit and these small units so mostly this microeconomics now can be explained with the study of the individual consumers and with the study of the theory of the firm with the individual producers. So the study of behavior of the individuals decision making into the firms or in the form of the consumers and at the same time when we say the producer they can be the owner of various resources so a person who is owning the resource of a land that will be one part if he is owning certain amount of the money or the wealth that he is going to lend for the further production to the others so he is the resource owner of the credit even he will be dealing like this so when these factors of the production and the consumption we have to deal there should be certain market signals or in other words these market signals it should be quantifiable. So if we say here everything that will be in the economy we will not give it a value so to give that value we have to measure that commodity that resource that labor. So if we say the aid of that measurement then we say that that is the price price of that resource price of that good so in microeconomics mostly price determination concept will be developed and microeconomics which is it was this term was first utilized by a Norwegian economist Ragnar finished and microeconomics which is explained if we see so we have never seen in economics so our biggest three questions were to produce how to produce and how much in three questions on individual level how to deal with firms and individuals and to answer those questions which procedures will be used this all study it will come under the school of microeconomics so it analyze the behavior of the economic agent it underlying the supply and the demand issues it provides the pricing of the concept and at the same time when we say there are the various types of the market so the behavior of the market that either the market structure will be in the form of single unit and having the full control mean monopoly or there will be the combination of the two in the form of oligopoly or there can be any other when there will be the many factors of the production owned by the many many owners and there can be many firms in the market so these are the various structure of the firms or the market that we will be studying here so in this diagram we can say that broadly microeconomics will be explained under factor pricing where all the factors of production they will be included and the other side when we say that it will be the commodity market it will be explaining the product pricing when it will be the product pricing here again the products its demand from the consumer has to be studied and how the theory of supply will explain the supply of the output when it will come under the factor pricing the four aspects that we will be dealing that the factors if they will be labor they will be mired through their wages if there will be any type of the building or the land its premium will be paid in the form of the rent if there will be any type of the money resources in the form of the wealth so what will be the cost of those resources that will be in the form of the interest and then what will be the profit and by those factors of production and redistribution or the distribution of this resource that will be studied under welfare economics and this concept was mostly explained in the form of the normative economics by the PGO so under the microeconomics when we say what type of the theories we will be dealing so there will be the theory of consumer behavior so this theory of consumer behavior will provide insight to the individual that how they will make their choices how they will limit their income for the attainment of their wishes and how the prices of the goods and the services they will be determined for the output when we will come to the theory of production here the decision that how the firm they will allocate their budget or the available resources for the production of their output and then how they will decide and prioritize their resources as per their productivity and as per its pricing and as per its cost so these aspects that will be dealt under the theory of the firm and what was the level of the technology available to them and when we say the market structure here we will study what is the market structure what are the rules to run that market what are the resources of the available to that market either all the resources or the factors of production they are owned by a single firm either the sources they are shared by any other thing or either these resources they are the property of none yes it can be the firm when certain resources they are owned by the public so there can be the public goods and this public good concept will come again under the welfare economic and when we will say the theory of factor pricing so how the prices of factors will be decided either the factor they are made properly sometimes these factors they are not made properly in the form of the that phenomena when there will be no market this is exactly the same example which we say that since the sun is available for everyone and this is public good and its market is not available so its pricing is not possible but in comparison if we look at the other side then irrigation water or apashi water which is available to people through our rivers and rivers so we consider it as a factor of production on a very subsidized price but when this water is not in the rivers then to apply the water once on the tube as much as it costs then the same price or cost of 1-1.5 inch water becomes much more in the form of the opportunity cost so such factors of production are sometimes difficult for us for which the market is not available and similarly in factor pricing there are some resources that are not tradable which we cannot trade like land it can be in one area and we can transfer it and not take it anywhere else so when we study all these factors we will do them in theory of factor pricing and when we see that various entrepreneurs, various producers are actively playing a role in the market and in that active role they look at the strategic moves, they look at the competition and when they look at the competition they assess that how much price will my competing firm bring to the market and if this price will bring to the market then what will be the response of consumers and in the response if its demand increases then what will be the difference between my output and my supply and in response what strategy should I adopt so if we look at this competition to deal with the strategic moves adopted by our mohleaf entrepreneurs and the producers and the outcome of its consequences or loss this will come under the game theory