Microeconomics is a sub-discipline of economics and is used to study the fundamental concept of business or the small scale economies. The word microeconomics is made from micro (small) and economics which defines it very well. It studies the simple and complex relations of consumers and producers (either an individual or a big industry). In other words we can define it as a research tool for the individual parts of the national or global economy and is used to find the responsible factors and causes of the business rather than the complete financial infrastructure of the country. It is completely different than macroeconomics which studies the effect of all micro economies on a big economy.
Microeconomics works on the individual and groups regarding the business and examines their relation on the basis of production, cost, benefits and their effects on each other. It concentrates on consumer and producer or supplier of goods and services and their correlations towards the business. It analyzes the affecting factors of the business and guides them to prepare strategy for their profits and progress
Microeconomics is a method to solve the problems of economy by answering the questions related to money, business cycle, opportunities, financial efficiencies, market and its trends, consumer behavior, taxation, business infrastructure, etc. Although it doesn’t cover the macroeconomics but it deals with the effect of national economic policies on the small economies. Microeconomics tries to understand the mechanism of market and its functionality. It analysis the market results success or failure as well as the competition of the market with general equilibrium, market uncertainty, economic applications by using its own developed model and practices. It is based on the theory of supply and demand, resources and consumption, producer/seller or buyers and evaluates the market to gain maximum profitability. It rounds up and deals with the specialized areas of economics as industrial organization, law and economics, labor economics, political economics, financial economics and much more.