A Microcontroller is basically a computer on a chip. It differs form normal desktop or laptop computers in that a microcontroller is an application specific computer that usually runs a single program performing dedicated task(s) while the the later two are general purpose computers that can run numerous programs depending on a users needs. A microcontroller contains on chip CPU, input/output interface, memory, clock, timer, and an assortment of of other peripherals.
A Microprocessor on the other hand is just a CPU one has to add externally memory, clock, input/output interfaces, timer and all other needed peripheral. This is the reason a microprocessor has so many pins.
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