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How relevant are the microeconomics models to the Real World?

How relevant are the microeconomics models to the Real World?

Answers

Economic models are only an approximation of apart of the real world chosen for the purpose of study. The relevance and applicability of this model to the real world will depend on;-
i) How realistic are the assumptions of the model.
ii) How consistent are the assumptions with one another.
iii) How accurate and relevant are the data to validate the assumptions
iv) And how logical and realistic are equations of the model.

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Wilfykil answered the question on March 20, 2019 at 06:11

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