What is microeconomics mainly concerned with?

Microeconomics primarily focuses on the behaviors and decisions of individuals, households, and firms in relation to the allocation of resources and the pricing of goods and services. It examines how these small-scale entities interact within markets, how they respond to changes in prices, and the factors that influence their economic decision-making processes.

In this context, microeconomics looks at issues such as consumer behavior, production costs, market structures, and competition, allowing for an understanding of how private sector decisions drive overall economic activity. By looking at individual players in the economy, microeconomics helps explain larger economic phenomena that occur on a national or global scale, but its core emphasis remains on the choices made by households and firms.