Explain the importance of microeconomics in Business Decision Making?

—Microeconomics examines the functioning of individuals consumption making decision making, typically households, and of firms seeking to meet consumers needs typically business firms both small and very large.

—Given certain assumptions, households maximize utility from their incomes and firms their profits. —Knowledge of decision making behavior of the households and firms, yields useful conclusions as to how resources of a society are allocated and how markets work and the like.