On the Analytical and Methodological Significance of Microeconomic Theory

In responding to Guerrien and Benicourt's criticisms of, and reasons for abandoning, microeconomic theory, this article first discusses certain aspects of the general purpose and methodology of that theory. It then presents counter arguments to four specific Guerrien–Benicourt reasons for abandonment relating to problems with, respectively, the theory of price determination in general equilibrium theory, the standard analysis of a market in isolation, general equilibrium with imperfectly competitive markets, and the theory of firm decision making.