The need for precise characterization of dual-phase xenon detectors has grown as the technology has matured into a state of high efficacy for rare event searches. The Michigan Xenon detector was constructed to study the microphysics of particle interactions in liquid xenon across a large energy range in an effort to probe aspects of radiation detection in liquid xenon. We report the design and performance of a small 3D position sensitive dual-phase liquid xenon time projection chamber with high light yield ($L_y^{122}=15.2 $pe/keV at zero field), long electron lifetime ($tau > 200 mu$s), and excellent energy resolution ($sigma/E = 1%$ for 1,333 keV gamma rays in a drift field of 200 V/cm). Liquid xenon time projection chambers with such high energy resolution may find applications not only in dark matter direct detection searches, but also in neutrinoless double beta decay experiments and other applications.
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