Answer to Question #19022 in Microeconomics for achal

Question #19022
What is the role of an assumption in economic theory?
1
Expert's answer
2012-11-19T09:49:17-0500
That other forces or social conditions will not affect the theory. Like the assumption in economics that people will react in a prudent and reasonable manner to maximize their incomes etc. Obviously people don't always act in a prudent manner or necessarily in their own best interest as they often times do not have perfect information.

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