Microeconomics is a branch of economics that deals with the economy of a particular entity (firms, organizations or individuals). It focuses on the optimal allocation of resources (goods) in the whole process of creating products and the demand for them from customers. The opposite is Macroeconomics, which examines an economy that surrounds us as a whole.
Microeconomics in practice: Microeconomics is primarily a science of human decision making and behavior of people and organizations on the basis of decision making. It seeks to understand and explain the behavior of individuals and organizations and the limits and barriers to their objective actions and decisions. It deals with prices, competitors, customers, products, taxes and collision of supply and demand in the market.
Applying the knowledge of microeconomic theory assists organizations in pricing, bringing products to the market and cost management.