Microeconomics literally deals with an individual firms and its internal structural management.
Macroeconomics deals with social and economic conditions of larger systems and firm is one of the sub-part of it. We can also say microeconomics is a part of macroeconomics. Here, the businessman is interested in knowing the present and future and economic system apart from knowing the product price and firm structure.
Difference between Microeconomics and Macroeconomics:
|Deals with an individual firms and the activities lies within.||Considers the social and economic conditions of larger systems and firm.|
|Deals with consuming units or individual producing units.||Deals with the bigger picture and not just one single module or unit.|
|It considers first,the individual firm,and then its surrounding market to determine the resources, revenues cost, employment and so on.||Businessman has to know the present situation trends like gross national product, changes in consumption and investment patterns,etc.|
|Determining the demand of theory and theory of production.||Determining aggregate demand and supply of economy.|
|Price is the main determining factor here.||Income is the main determining factor here.|
|Consumer and company equilibrium is established.||Equilibrium between the income and employment of the economy is established.|
|Example: Small firms and economic units.||Example: International organisations need to understand the cash flow,money exchange follow macroeconomics principles.|
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