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What is microeconomics in economics?

Microeconomics is a branch of economics that analyzes the market behavior of individuals and businesses to understand their decision-making processes.

Why is microeconomics important?

Microeconomics shows how and why different goods have different values. It addresses how individuals and businesses conduct and benefit from efficient production and exchange and how individuals can best coordinate and cooperate with each other. Microeconomics provides a more detailed understanding of individuals, firms, and markets.

What does a microeconomist do?

Microeconomists form various types of models based on logic and observed human behavior and they test the models against real-world observations. Microeconomics is the study of what's likely to happen when individuals make choices in response to changes in incentives, prices, resources, or methods of production.

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