 Neo classical school of thought has foundered by prof. Dr.

Alfred Marshall and who described

that “economics” as a science of material welfare in his book “principles of economics” in 1890.
 So that not only was founded on neo classical thought about Alfred Marshall that other
scientists are presented by definition and ideas about this theory. Who are w. Stanley
Jevons(English) that his idea of theory of political economy 1871, carl menger(Australian)
Grundsatze der volkswirthschaftslehre 1871, Leon warlras(French) elements of economic
politique pure 1874, and John bates Clark (American) the philosophy of wealth Alfred Marshall
1885.
 Mostly this thought focuses on demand and supply as the driving forces under the following
characteristics. There are production, pricing, income distribution and goods and services
consumption.
 This theory divided by three types and there are classic block, temple and palladian.
 Neo classical thought mostly used that efficiently allocated of limited productive resources and
also considered the growth of the resources long term.
 This thought has four basic assumptions that there are consumers are very rationality, the
importance of the profit motive for companies, government need to advocate that market
equilibrium and influence of the utility on prices.
 Neo classical school of thought that example for that we want to buy designer apparel because
of the attached brand label.
 This theory has different definitions that it’s focus on the allocation of resources for that c
certain point in time, utilitarianism, general equilibrium and methodological individualism etc.
 This theory has some criticism that there are used that unrealistic assumption, overdependence
on that mathematical approaches and it’s complex, unrealistic on that mathematical models.
 The neo classical theory rejected that cost theory and utility theory value and classical
malthusian law.
 This theory was introduced by marginal theory of production and distribution accept theory of
compare to the advantages.
 This theory we can see in micro and neoclassical economics.