Microeconomic微观经济学剖析.ppt

Microeconomics: Key Ideas and Concepts Chapter 1 Using Economics Microeconomics The branch of economics that examines individual decision making by firms, households and consumers, and the way they interact in specific industries and markets Classical Economics Adam Smith 1776: “Wealth of Nations” Invisible hand Alfred Marshall 1890: “Principles of Economics” Firms maximise profits Consumers maximise enjoyment Equilibrium Key Ideas of Neoclassical Economics Scarcity Opportunity cost Thinking at the margin Incentives in individual decision making The role of markets Market failure Observations