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Question
Microscopic study
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Solution
Micro Economics is .the microscopic study of the economy.
In the words of Prof. A.P. Lerner, "It is looking at the economy through microscope, as it were to see how the millions of cells in the body of economic - the individuals or households as consumers, and individuals or firms as producers play their part in the working of whole economic organism".
In Micro Economic theory, we discuss how the various cells of economic organism, such as thousands of consumers, thousands of producers or firms, thousands of workers and resource suppliers in the economy; do their economic activities and reach their equilibrium state.
In other words in Micro Economics, we attempt only a microscopic study of the national economy. We do not study the national economy in its totality.
