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1、CHAPTER1Microeconomics,AWayofThinkingaboutBusinessIneconomicsinparticular,educationseemstobelargelyamatterofunlearningand“disteaching”ratherthanconstructiveaction.Aonc-famousAmericanhumoristobservedthat“it’snotignorancethatdoessomuchdamage;it’sknowin’sodar
2、nmuchthatain’tso.”...Itseemsthatthehardestthingstolearnandtoteacharethingsthateveryonealreadyknows.FrankH.KnightrankKnightwasawiseprofessor.ThroughlongyearsofteachingherealizedthatFstudents,eventhoseinadvancedbusinessprograms,beginningastudyofeconomics,nom
3、atterthelevel,faceadifficulttask.Theymustlearnmanythingsinarigorousmannerthat,onreflectionandwithexperience,amounttocommonsense.Todothat,however,theymustsetaside—or“unlearn”—manypre-conceivednotionsoftheeconomyandofthecourseitself.Theproblemof“unlearning”c
4、anbeespeciallyacuteforMBAstudentswhoarereturningtoauniversityafteryearsofexperienceinindustry.Peopleinbusinessrightfullyfocustheirattentionontheimmediatedemandsoftheirjobsandevaluatetheirfirms’successesandfailureswithreferencetoproductionschedulesandaccoun
5、tingstatements,aperspectivethatstandsinstarkcontrasttotheperspectivedevelopedinaneconomicsclass.Asallgoodteachersmustdo,weintendtochallengeyouinthiscoursetorethinkyourviewsontheeconomyandthewayfirmsoperate.Wewillaskyoutodevelopnewmethodsofanalysis,maintain
6、ingallthewhilethatthereis,indeed,an“economicwayofthinking”thatdeservesmastering.Wewillalsoaskyoutoreconsider,inlightofthenewmethodsofthinking,oldpolicyissues,bothinsideandoutsidethefirm,aboutwhichyoumayhavefixedviews.Thesetaskswillnotalwaysbeeasyforyou,but
7、weareconvincedthattherewardsfromthestudyaheadaresubstantial.Thegreatestrewardmaybethatthiscourseofstudywillhelpyoutobetterunderstandthewaythebusinessworldworksandhowbusinessesmightbemademoreefficientandprofitable.Muchofwhatthiscourseisaboutis,oddlyenough,c
8、rystallizedinastoryofwhathappenedinaprisoner-of-warcamp.TheEmergenceofaMarketEconomicsystemsspringfrompeople’sdrivetoimprovetheirwelfare.R.A.Radford,anAmericansoldierwhowascapturedandimprisonedduringtheSecond