Macro and micro

Macro and micro: The two parts of Economics i.e. microeconomic and macroeconomics are not interrelated but are mutually exclusive. A close connection exists between the two terms. All microeconomic studies can analyze the better understanding of micro and macroeconomics variables. Such a study will help in the formulation of economic policies and programs. As we know, changes and processes in the economy are a result of both small and large-scale elements which retain the capacity to affect each other or are directly affected by each other. For example: Although the tax increase is a macroeconomic decision, its impact on firms ' savings is a microeconomics analysis.
Interrelated: Should a national policy be passed, such as when the nation’s central bank cuts the interest rate (a macro impact) by 100 basis points (100 bps = 1%), this will lower the borrowing costs of commercial banks. This, in turn, helps their deposit rate to drop, which gives room to lower the interest rate on credit, and to individuals and business. This causes a rise in borrowings and creates a climate of greater investment, which helps businesses invest in new assets, projects, and expansion plans (a micro impact). The condition of the microeconomy is one of the many factors that determine macroeconomic policies. To continue the example, the central bank observes the lending and investment trends of businesses, individuals and households, now that the interest rate has been lowered, in order to determine whether or not they should make additional cuts. If the outlook is weak, keep rates as is, or increase them if the outlook is picking up
MRTS: is an economic theory that shows the rate at which one factor must decrease so that the same level of productivity can be maintaince when another factor is increased.
.Economies of scale: Any time a company can decrease costs by increasing the volume of goods they produce, that's an example of an economy of scale. There are several reasons why the costs of production would decrease as volume increases.