What is Microeconomics? Definition, Understanding

Microeconomics:

Microeconomics - is concerned with decision-making by individual economic agents such as firms and consumers

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The prefix micro means small, indicating that microeconomics is considered with the study of the market system on a small scale. Microeconomics looks at the individual markets that make up the market system and is concerned with choices made by small economic units such as individual consumers, individual firms, or individual government agencies.