1. Study of Individual Units - study of behavior of small individual economic units. Micro economics is concerned with the study of economic behavior of individual units like households, firms, industries and markets. In other words, it makes microscopic or in-depth study of individual economic units and no the whole economic units.

2. Price Theory - Microeconomics is called price theory since it is mainly concerned with determining price of goods and factors of production. Micro economics analyses how the prices of individual commodities and services are determined. It also explains how millions of producers and consumers take decision regarding allocation of resources. Price theory benefits both, the consumers (by rendering guidance as to how to make optimum use of money to attain maximum satisfaction) as well as the producer (by rendering guidance as to how to fix the price of a product/ service, which would fetch maximum profit).

3. Slicing Method - Microeconomics splits economy and studies each individual unit separately in detail. It divides or slices the economy into smaller units, (such as individual households, individual firms, etc) for the purpose of in-depth study.

4. Partial Equilibrium - isolates an individual unit from other forces and proceeds with assumption. Approach neglects interdependence between economic variables. Micro economic analysis is a partial equilibrium analysis. Partial equilibrium analyses equilibrium position of an individual economic unit i.e. individual consumer, individual firm, individual industry etc. It isolates an individual unit from other forces and proceeds with the assumption “Other things remaining the same” (Ceteris Paribus). Many theories of micro‐economics are based on such assumptions. Partial equilibrium also neglects the interdependence between economic variables

5. Microscopic Approach - the microscopic study of national economy and not in its totality. Micro Economics takes a microscopic view of the economy to study how it works, i.e. it studies the function of the economy in terms of behavior of the individual consumers, producers, firms, markets and industries. This approach is also known as slicing method, since it splits the whole economy into smaller units for the purpose of intensive study.

6. Analysis of Resource Allocation & Economic Efficiency - deals with the problem of income distribution. Also examines if the current allocation of resources is efficient. Micro economics deals with the resource allocation among the competing groups. It further explains how the relative prices of both, goods as well as factors of production would determine the allocation of resources.

7. Use of Marginalism Principle - important micro economic decisions taken at a margin. Marginal refers to the change brought about in total by an additional unit (marginal unit). Micro economics makes use of marginalism principle as its tool of analysis as all important micro economic decisions are taken at the margin. The concept of marginalism is important in all the areas of micro economics. Producers and consumers also take economic decisions using this principle.

8. Based on Certain Assumptions - it assumes lassiez fair policy, pure capitalism, full employment, perfect competition, etc. which don't exist in reality. 'ceteris paribus' assumption makes analysis simple. The theories follow the partial equilibrium analysis in order to study a particular individual unit of an economy. They are based on certain assumptions such as perfect competition, laissez fair policy, pure capitalism, full employment, ceteris paribus etc, which do not exist in reality. These assumptions make the analysis simple and the theories static, but at the same time neglect the interdependence between economic variables and the changing economic world.

9.Limited Scope - studies individual economic units and not the whole economy. It doesn't deal with nationwide problems like unemployment, inflation, deflation, poverty, etc. The scope of micro economics is limited since it doesn’t deal with the nationwide economic problems such as inflation, deflation, balance of payment situation, poverty, unemployment, population, economic growth etc.

10. Analysis of Market Structures - it analyses different market structures like perfect competition, monopoly oligopoly, monopolistic competition, etc & describes how price and quantities are determined in different markets. Micro economics deals with the resource allocation among the competing groups. It further explains how the relative prices of both, goods as well as factors of production would determine the allocation of resources.