4) Micro Economic theories are based on certain assumptions. ANSWER:

4) Micro Economic theories are based on certain assumptions.

ANSWER:


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.

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