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Quality Microeconomics

DOI: 10.4236/oalib.1102566, PP. 1-15

Subject Areas: Economics

Keywords: Quality Microeconomics, Product Value, Producer Profit, Utilization Cost, Environmental Cost, and Monitoring Game

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Abstract

In traditional microeconomics, only the relationships between quantities and prices of products are taken into account, while the effects of products qualities on the prices, sales, production costs, utilization costs and environmental costs are scarcely or not considered. This paper discusses the differences and relations between the three parties of quality economics, quality economy analysis and quality economy, and sorts out the relevant research results in China and abroad. The paper analyzes the relationship among quality, price, demand and supply, introduces the value parameter, reconstructs the traditional formula for maximization of producer profit, and puts forward relevant policy suggestions: the government can supervise quality and environment by means of standards and taxation. With the stepwise perfection and increased strictness of standards, the quality level of a product will be higher and higher, and the environmental condition of a country or a region will be better and better. The quality level of a product is the most crucial factor affecting the producer profit and the social benefit.

Cite this paper

Liu, J. (2016). Quality Microeconomics. Open Access Library Journal, 3, e2566. doi: http://dx.doi.org/10.4236/oalib.1102566.

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