TITLE:
Quality Microeconomics
AUTHORS:
Jiancheng Liu
KEYWORDS:
Quality Microeconomics, Product Value, Producer Profit, Utilization Cost, Environmental Cost, and Monitoring Game
JOURNAL NAME:
Open Access Library Journal,
Vol.3 No.3,
March
28,
2016
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.