Assertion: Biotechnology produces transgenic microorganisms that are micro-factories for proteins.
Reasoning:: Transgenic microorganisms can be developed to produce proteins of human use. E.g. - insulin.

Both Assertion (A) and Reason(R) are correct but R is not the correct explanation of A.

By inserting genes (or desired protein products transgenic micro-organisms can be developed using recombinant DNA technology. These transgenic organisms acts as living microfactories that produce proteins like human insulin, human growth hormone, etc. Production of proteins from such organisms is easier, more efficient and cost effective.