What is Critique of microeconomics?

Answer 1

The critique of microeconomics often centers on its assumptions and methodologies, particularly its reliance on rational choice theory and the notion of perfect competition. Critics argue that these assumptions oversimplify human behavior and market dynamics, failing to account for real-world complexities such as information asymmetries, behavioral biases, and externalities. Additionally, the focus on individual agents can overlook systemic issues and the broader socio-economic context in which markets operate. This critique highlights the need for more interdisciplinary approaches and models that better reflect actual human behavior and market conditions.