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Emerging primarily from the principles established by the Marginal Revolution, Neoclassical Economics focuses on the behavior of individuals and firms in maximizing utility and profits, respectively. Neoclassical economists utilize mathematical models to analyze economic phenomena, emphasizing equilibrium in markets where supply meets demand.
These economists are generally less supportive of significant government intervention, believing that markets tend to self-correct during downturns. The core of Neoclassical Economics lies in marginal analysis, a crucial component of microeconomic studies that examines the additional benefits or costs associated with consuming one more unit of a good or service.