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What is Microeconomics? Microeconomics (from Greek prefix mikro - meaning "small" + economics) is defined as a branch of economics that studies the behaviour of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. The goal of microeconomics is to analyze the market mechanisms that establish relative prices among goods and services and allocate limited resources among alternative uses.
Continuation.... Microeconomics also deals with the effects of economic policies on microeconomic behavior and thus on the aforementioned aspects of the economy.
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