Question

Micro Economic theories are based on certain assumptions, give the reason.

Answer 1

Assumptions provide a way for economists to simplify economic processes and make them easier to study and understand. ... For example, economists assume that individuals are rational and maximize their utilities.

Answer 2

Answer:

Hi there.

Micro Economic is a field of science that deals with the individual practices market and the demand and supply of products. It also indicated the individual factors that effect a market.

Economist use theoretical frameworks and perform experiments based on their assumption. Things and concepts in micro economics are easily observed and proved over a period of time, therefore we can say the principles of this field originated from well based assumptions later turned into successful experiments.

Thanks