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Some of the limitations of Micro Economics are given below.
1. Unrealistic Assumptions: Micro economics is based on unrealistic assumptions, especially in case of full employment assumption which does not exist practically. Even behaviour of one individual can not be generalised as the behaviour of all.
2. Inadequate Data: Micro economics is based on the information dealing with individual behaviour, individual customers. Hence, it is difficult to get correct information. So because of incorrect data Micro Economics may provide inaccurate results.
3. Ceteris Paribus: It assumes that all other things being equal (same) but actually it is not so.
Savannah Schowalter
Darien VonRueden
Some of the limitations of Micro Economics are given below.
1. Unrealistic Assumptions: Micro Economics is based on unrealistic assumptions, especially in case of full employment assumption which does not exist practically. Even behaviour of one individual can not be generalised as the behaviour of all.
2. Inadequate Data: Micro economics is based on the information dealing with individual behaviour, individual customers. Hence, it is difficult to get correct information. So because of incorrect data Micro Economics may provide inaccurate results.
3. Ceteris Paribus: It assumes that all other things being equal (same) but actually it is not so.
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