Microeconomic Theory Guoqiang TIAN Department of Economics Texas A&M University College Station, Texas 77843 (email@example.com) August, 2002/Revised: February 2013 1This lecture notes are only for the purpose of my teaching and convenience of … To economists, rationality means an individual’s preferences are stable, total, and transitive. Microeconomic theory begins with a single objective analysis and individual utility maximization. Classical microeconomic theory was developed by Adam Smith (Wealth of Nations, 1776) and later economists, such as David Ricardo The essential aspect of classical microeconomic theory include: Determination of market price and output. Microeconomic Theory I ECON 502 - Spring 2013 Register Now Math_Handout_Week_1.pdf. Externalities and Public Goods Imperfect Competition. 7005. More materials in my book, Advanced Microeconomic Theory: An Intuitive Approach with Examples, MIT Press, Link, and eBook format. 7005, “Microeconomic Theory I,” and Econ. 7007, “Macroeconomic Theory I,” at the University of Utah by Gabriel A. Lozada The contents of Sections 1–6 below are required for basic consumer and producer theory, which is usually taught at the very beginning of Econ. Econ. Alternatives to Subjective Probability Theory Perfectly Competitive Markets (Partial and General Equilibrium) Monopoly markets (and Price Discrimination). 8 pages. This contrasts with macroeconomic theory, which is focused instead on the broad trends and behaviors that characterize entire economic systems. Microeconomic theory is a subfield of economics that seeks to examine the interactions between individual buyers and sellers through the decision-making processes of consumers and businesses. Classical microeconomic theory. It assumes continuous preference relations to ensure that the utility function is differentiable when you compare two different economic outcomes.