What are the limitations of microeconomics? What are the advantages?

The ADVANTAGES of microeconomics are listed below:

• It helps in understanding the working of the economy
• It helps in the efficient allocation of resources.
• It is useful in business decision-making.
• It provides knowledge as to how the price of products is determined.
• It is involved in studying many forms of human behavior. The law of diminishing utility, equip-marginal utility, indifference curve theory all study human behavior.
• It also helps the government to formulate different economic policies for the welfare of the people. It gives tools and foundations for the analysis of economic policy.

The LIMITATIONS of microeconomics are as follows:

• It is based on "ceteris paribus" and "full employment" assumption, which is an unrealistic assumption.
• It concentrates only on small parts of the total economy. For example, it studies only about individual demand, individual price, and so on.
• It may not be true in aggregates.