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1、CHAPTER1Microeconomics,AWayofThinkingaboutBusinessIneconomicsinparticular,educationseemstobelargelyamatterofunlearningand“disteaching”ratherthanconstructiveaction.Aonc-famousAmericanhumoristobservedthat“it’snotignorancethatdoessomuchdamage;it’sknowin’sodarnmuc
2、hthatain’tso.”...Itseemsthatthehardestthingstolearnandtoteacharethingsthateveryonealreadyknows.FrankH.KnightrankKnightwasawiseprofessor.ThroughlongyearsofteachingherealizedthatFstudents,eventhoseinadvancedbusinessprograms,beginningastudyofeconomics,nomatterthe
3、level,faceadifficulttask.Theymustlearnmanythingsinarigorousmannerthat,onreflectionandwithexperience,amounttocommonsense.Todothat,however,theymustsetaside—or“unlearn”—manypre-conceivednotionsoftheeconomyandofthecourseitself.Theproblemof“unlearning”canbeespecial
4、lyacuteforMBAstudentswhoarereturningtoauniversityafteryearsofexperienceinindustry.Peopleinbusinessrightfullyfocustheirattentionontheimmediatedemandsoftheirjobsandevaluatetheirfirms’successesandfailureswithreferencetoproductionschedulesandaccountingstatements,a
5、perspectivethatstandsinstarkcontrasttotheperspectivedevelopedinaneconomicsclass.Asallgoodteachersmustdo,weintendtochallengeyouinthiscoursetorethinkyourviewsontheeconomyandthewayfirmsoperate.Wewillaskyoutodevelopnewmethodsofanalysis,maintainingallthewhilethatth
6、ereis,indeed,an“economicwayofthinking”thatdeservesmastering.Wewillalsoaskyoutoreconsider,inlightofthenewmethodsofthinking,oldpolicyissues,bothinsideandoutsidethefirm,aboutwhichyoumayhavefixedviews.Thesetaskswillnotalwaysbeeasyforyou,butweareconvincedthattherew
7、ardsfromthestudyaheadaresubstantial.Thegreatestrewardmaybethatthiscourseofstudywillhelpyoutobetterunderstandthewaythebusinessworldworksandhowbusinessesmightbemademoreefficientandprofitable.Muchofwhatthiscourseisaboutis,oddlyenough,crystallizedinastoryofwhathap
8、penedinaprisoner-of-warcamp.TheEmergenceofaMarketEconomicsystemsspringfrompeople’sdrivetoimprovetheirwelfare.R.A.Radford,anAmericansoldierwhowascapturedandimprisonedduringtheSecond