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In very brief, Microprocessor is a CPU-on-a-chip, where as Microcontroller is a Computer-on-a-chip. We all know that CPU(Central Processing Unit) is divided with accumulator (for mathematical and logical operation), different registors (for memory addressing or data accessing), interfacers (interfacing units connected with memory by system bus), timing & control units (for difierent operations to control the information). MIcroprocessor is a chip where that all are included for operations. But a computer is a system that divided with various subsystems like CPU, RAM, ROM, I/O ports, Timers and so on. Microcontroller is a chip on which that all facilities are incorporated. Also the memory capacity of a microcontroller is more than microprocessor. Both are small in size, easy to use and available in market in variety types with minimum costs.
microcontorller is an IC which has all the peripheral devices included in it .it does't need any other device (such as memory,decoder ,buffer,latches,timer,PIC etc )except some in particular cases . These all are included in microcontroller.But for microprocessor we need all the pheripheral devices listed above .Except it microcontorller is desinged for some specific task,but microprocessor is verstile.in PC microprocessor is used not microcontroller