Is it bad to call out a coworker who calls you a midget at work in front of your boss?

I am petite 5' and was talking about my friend and mentioned that she's smaller than me and this guy coworker who I barely know is like what she's a midget? and I was like excuse me? Should I have left it? I thought that was rude I know its a joke. and I def made it clear I was not into that joke by saying "excuse me?"

Is it bad to call out a coworker who calls you a midget at work in front of your boss?
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