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the term micro is derived from the greek word mikros which means small thus micro economics is the theory of small. Micro economics is that branch of economics which studies an economic or decision making unit and considers in detail the behavior of that particular unit
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importance of micro-economics
Micro economic analysis is extremely useful and helpful in the formulation of economic policies that will promote economic welfare of the masses. Micro economics solves the three central problems of the economies. Q) what goods and services are produced? Q) how goods and services are produced? Q) For whom to produce produced and distributed. It promotes economic efficiency Micro economies has application in various diversified fields of economic and commerce, such as agricultural economies, labor economies, international economics, consumer economics.