Advertisement Remove all ads

Give Reasons Or Explain the Following Statement. Micro Economic Theories Are Based on Certain Assumptions. - Economics

Short Note

Give reason or explain the following statement.

Micro Economic theories are based on certain assumptions.

Advertisement Remove all ads


Microeconomic theories are based on assumptions such as full employment, perfect competition, a laissez-faire style of working (no government intervention) and ceteris paribus. These assumptions help in understanding the relationship between any two variables. However, these assumptions may or may not exist in the real world.

Concept: Assumption of Micro Economic Analysis
  Is there an error in this question or solution?
Advertisement Remove all ads


Micheal Vaz Economics HSC 12th Standard Maharashtra State Board
Chapter 1 Introduction to Micro Economics
Exercise | Q 2.4 | Page 6
Advertisement Remove all ads

Video TutorialsVIEW ALL [1]

Advertisement Remove all ads

View all notifications

      Forgot password?
View in app×