Maharashtra State BoardHSC Arts 12th Board Exam
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Give Reason Or Explain the Following Statement:Micro Economic Theories Based on Certain Assumptions. - Economics

Give reason or explain the following statement:

Micro economic theories based on certain assumptions.

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Microeconomic theories are based on certain assumptions.

Ans. Yes, I agree with this statement,

  1. Micro Economics makes partial equilibrium analysis. Micro economics is based on the assumption ‘Ceteris paribus’ (which means ‘other things being constant).
  2. Microeconomics also assumes conditions of full employment, pure capitalism, perfect competition, etc. in an economy,
  3. Thus, we can conclude that the Microeconomic theories are based on certain assumptions. 
Concept: Assumption of Micro Economic Analysis
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