Question

Is orthodox neoclassical economics founded in methodological individualism? Does this incline to any particular politics?

Answer 1

Solution :

Generally before answering this question we have to discuss about  orthodox neoclassical economics and methodological individualism.

Orthodox neoclassical economics :

a). This is wide theory that relates about to focus on demand and supply of production, consumption & pricing of goods and services.

b). Some classical economists strongly assumes that cost of production is most important factor in product price.

c). But some Neoclassical economists argues that customers ability or perception of products value is the driving factor in its price.

d). Further, Neoclassical economists stipulates that the product or service often has value above and beyond its production costs.

e). Neoclassical economists maintain that forces of supply and demand will lead to allocation of resources.

Methodological Individualism :

a). This was discusses as a project by reduction in context of social sciences and by analyse methodological individualism in context of neoclassical economics.

b). The approach of this individualism and rational choice as external choice to customers.

c). This seems to be a change in customers ability which reflects the boundaries of production and pricing of goods and services.