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What are the fundamental assumptions of microeconomics?
There are certain assumptions that suggest concepts and approaches of microeconomic theory. Such assumptions are;
1) Every single person acts logically or sensibly.
2) True information is readily accessible on production, demand, quality as well as other market factors.
3) Products and labor force-efforts are separable.
4) Full employment is still in the sector.
5) Private-party operation is exempt of government interference.
6) It is focused mostly on 'ceteris paribus' principle.