Review of the marginal analysis of micro-economics 1, Marginal Revolution and the rise of marginal analysis Marginalist (marginalism) is the value of marginal utility theory of economics to its genre, originated in Ricardo&#39;s rent theory, mainly formed in the 19th century 70s to the early 20th century. The three founders are almost the same time the value of marginal utility theory proposed by economists: the UK Jevons, Menger in Austria and France, Walras. 19th century 70&#39;s &quot;marginal revolution&quot; for the formation of the new classical economics has laid a solid theoretical foundation, Walras, Jevons, Menger, the right to make an important contribution to marginalist there Wieser , Pangbaweike, Edgeworth and others. 1, marginal utility theory of value and marginal analysis School of marginal utility theory is based on the marginal utility theory of value. According to this theory, the value of goods is a commodity that people are feeling and the subjective evaluation of psychological and focus on the product brings the satisfaction. First of all, to bring goods to give effect, otherwise no one would need; but also must be of scarcity, otherwise there is no need to be exchanged with other items. Measure of value is the marginal utility, even if not directly brought about the effectiveness of the means of production, the value of their participation in the production of final consumer products to determine the marginal utility. Buyers and sellers on the item price is a subjective evaluation of the effectiveness of mutual competition and equilibrium results. Therefore, the ratio of the prices of various commodities should be equal to the ratio of their marginal utility. 2, the marginal productivity theory of distribution of and U.S. economist Clark systematically expounded the marginal productivity theory of distribution of modern economics, the theoretical basis. He also proposed a static analysis and dynamic analysis of the differences, this distinction greatly enriched the analytical tools of modern economics. Clark to marginal productivity theory to analyze and demonstrate the wage and interest, and his marginal productivity theory is a &quot;factor of production,&quot; &quot;marginal utility theory&quot; and the &quot;law of diminishing returns,&quot; Hybrid Theory. New classical economics, marginal doctrine has far-reaching impact. Marginal utility and marginal productivity theory is based on the Marshall School in Cambridge, England, represented by the theory of one of the pillars of modern micro-economics is an important part. Keynes accepted distribution, including the marginal productivity of marginal analysis, including theory and method, and its application to areas of macroeconomic analysis, so that principle of marginal analysis as the main tools of modern macroeconomics one. ? Second, the development of marginal analysis and neoclassical economics Marginal analysis phase, mathematical economics to borrow a historical stage of development of weapons, weapons to use basic calculus, in particular the partial derivatives, total differential, and Lagrange multipliers. School on the concept of marginal utility to marginal explanation and definition, then the marginal utility called Walras scarcity, Jevons called it the final effect, but the calculus that are the &quot;derivative&quot; and &quot;partial derivatives.&quot; Marginal analysis stage, advanced micro-economic research achievements can be summarized into three areas: the formation and development of a complete theory of microeconomic behavior of economic actors; proposed general economic equilibrium problem, to establish a theoretical framework of general economic equilibrium; creation of today&#39;s consumer theory, producer theory, theory of monopolistic competition, and general economic equilibrium theory of math. To introduce the following stages of formation and development of marginal analysis some of the theories. 1, theory of the firm. Enterprise Theory of enterprises invested in by the price of certain factors of production to provide the products of the process of behavior. Twenty-five years after the nineteenth century, created the concept of production function, so that the profit maximizing Cournot hypothesis has been great progress in the formation of a set of input demand and output supply of the rich theory that the theory of the firm. Make an important contribution to scholars Walras, Vickers brother (PH Wicksteed), Weikesaier (K. Wicksell), and Clark (JB Clark). Holt Spirit (H. Hotelling) summed up the first detailed theory of the firm&#39;s research results. 2, consumer theory. Consumer guidelines for consumer behavior theory and the main research objective of the visible demand. Gossen, Jevons and Walras starting from utility maximization, defined consumer demand, consumer theory first developed, followed by the Marshall made a further detailed discussion. Slutsky (E. Slutsky) in 1915 to maximize the effectiveness of the demand put forward a series of properties, Hicks (JR Hicks), Allen (RGD Allen), Holt Ling, Wald (A. Wald) and others in 1934 - between 1944 and the work that followed the Slutsky-depth research. On the basis of utility has been deepened in several ways: Fisher (I. Fisher, 1892) and Pareto (V. Pareto, 1909) with ordinal utility replaces the cardinal utility; Frisch (R. Frisch, 1932 ) and Duarte (F. Alt, 1936) proposed the axiomatic treatment cardinal utility; Paul Samuelson (1938) proposed a revealed preference. 3, general equilibrium. Markets are linked, the characteristics of economic equilibrium must be all the market supply and demand are equal, which is proposed by Walras in 1874 the basic concepts of general equilibrium. Walras not only this question, but also puts it in the form of simultaneous equations to be expressed, and then claim that the number of equations in the equation and the number of unknowns equal to Seoul equations solvable, and thus general economic equilibrium problems solution. He also proposed a search for solutions &quot;to explore the process,&quot; the existence of the solution gives evidence of an economic sense. Walras and Pareto also studied the optimal state of competitive equilibrium problems. Later it was found that Walras economic equilibrium given the existence of a general mathematical proof is not established, but because of the importance of thinking of general economic equilibrium, it took eight years of effort to study it, and finally in 1954 by the A Luo and Debreu real solution. 4, the optimal allocation of resources. Optimal allocation of resources is the core of microeconomic content. The first time today known as the concept of consumer surplus and producer surplus to the system of benefits and costs are Dupuyite (J. Dupuit, 1844), Pareto in 1901 on a number of economic activities and the best concept gives a clear definition, since optimality and suboptimality will become an important concept in welfare economics ,1938 - 1941 years, Holt Ling, Bergson (A. Bergson), Hicks this the research were integrated and summarized. 5, the general trade theory. General Trading Theory bargain-style &quot;face to face&quot; transactions. Edgeworth study in 1881 for the first time such a question: If the economic system not only exchange of equal value, but any type of commodity trading can be made, then the economic system, what consequences? Edgeworth proposed the &quot;contract curve&quot; concept, and proposed a conjecture: When an infinite number of traders increases, the contract curve shrinking into a competitive equilibrium set; He also invented the contract curve depicts a rectangular plan, said today its for the Edgeworth box. Edgeworth&#39;s contract curve in game theory to get an in-depth promotion, transformed into &quot;nuclear (core)&quot; concept, then the &quot;nuclear&quot; returned to the economic system and become the &quot;economic core.&quot; Hicks&#39;s 1946 book, &quot;Value and Capital&quot; and Samuelson 1947 book &quot;Economic Analysis&quot;, a comprehensive summary and analysis of the development of the marginal phase of the research work, especially Hicks developed the theory of intertemporal equilibrium , Samuelson put the revealed preference combination of stability and balance. These two books make marginal analysis reached its apex, making the history of the two classics of economics. ? Third, sum up Made with the political philosophy of individualism reign of 70 years occurred in the 19th century the marginal revolution in economics. Economic theory suggests that the subjective decision of the marginal utility value of such items. As a basis for the neo-classical economics, the marginal productivity of factors of production in determining income distribution between owners of production factors. Neoclassical economics sought to use the marginal analysis shows that the marginal production cost and how effective interaction. As the two world wars could not explain the Great Depression between the Western world because of modern marginal economics crisis. On the theory of imperfect competition, industrial organization and game theory are trying to elucidate a kind of reality more compelling economics.