"Microeconomics is a branch of mainstream economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms."
Microeconomics is the study of how individuals and firms make decisions regarding the allocation of scarce resources and how these decisions affect the distribution of goods and services. Topics include supply and demand, market structure, consumer behavior, and production costs.
"Microeconomics focuses on the study of individual markets, sectors, or industries as opposed to the national economy as a whole, which is studied in macroeconomics."
"One goal of microeconomics is to analyze the market mechanisms that establish relative prices among goods and services and allocate limited resources among alternative uses."
"Microeconomics shows conditions under which free markets lead to desirable allocations."
"It also analyzes market failure, where markets fail to produce efficient results."
"While microeconomics focuses on firms and individuals, macroeconomics focuses on the sum total of economic activity, dealing with the issues of growth, inflation, and unemployment—and with national policies relating to these issues."
"Microeconomics also deals with the effects of economic policies (such as changing taxation levels) on microeconomic behavior and thus on the aforementioned aspects of the economy."
"Much of modern macroeconomic theories has been built upon microfoundations—i.e., based upon basic assumptions about micro-level behavior."