Microeconomic theories are based on certain assumptions.

Ans. Yes, I agree with this statement,

i. Micro Economics makes partial equilibrium analysis. Micro economics is based on the assumption ‘Ceteris paribus’ (which means ‘other things being constant).

ii. Microeconomics also assumes conditions of full employment, pure capitalism, perfect competition, etc. in an economy,

iii. Thus, we can conclude that the Microeconomics theories are based on certain assumptions.