Neoclassical economics

A school of thought, associated with Alfred Marshall, an English economist, that developed in the late 19th and early 20th centuries. Rather than focus on the cost of production as the most important element in determining the price of a good or service (as did the classical school), neoclassical economists focused on the preferences of consumers, and the utility they attach to the product. The focus on both producers and consumers in maximising utility allowed the neoclassicists to build models of how the economy works.