Marginal utility: Difference between revisions
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==Links== | ==See also== | ||
===Bibliography=== | |||
* {{Cite journal | |||
|last=Kauder|first=Emil|authorlink=Emil Kauder | |||
|title=Genesis of the Marginal Utility Theory: From Aristotle to the End of the Eighteenth Century | |||
|journal=[[Wikipedia:The Economic Journal|The Economic Journal]] | |||
|volume=63|issue=251 | |||
|year=1953 | |||
|pages=638-650 | |||
|doi=10.2307/2226451 | |||
}} | |||
* {{Cite journal | |||
|last=Kauder|first=Emil|authorlink=Emil Kauder | |||
|title=The Retarded Acceptance of the Marginal Utility Theory | |||
|journal=[[Wikipedia:Quarterly Journal of Economics|The Quarterly Journal of Economics]] | |||
|volume=67|issue=4 | |||
|year=1953 | |||
|pages=564-575 | |||
|doi=10.2307/1883602 | |||
}} | |||
* {{Cite book | |||
|last=Kauder|first=Emil|authorlink=Emil Kauder | |||
|title=A History of Marginal Utility Theory | |||
|publisher=[[Wikipedia:Princeton University Press|Princeton University Press]] | |||
|place=Princeton | |||
|year=1965 | |||
|oclc=270555 | |||
}} | |||
===Links=== | |||
* [[Wikipedia:Marginal utility|Marginal utility]] on Wikipedia | * [[Wikipedia:Marginal utility|Marginal utility]] on Wikipedia | ||
* [http://mises.org/story/3100 Diminishing Marginal Utility: It's a Law] by Art Carden, October 2008 | * [http://mises.org/story/3100 Diminishing Marginal Utility: It's a Law] by Art Carden, October 2008 | ||
Revision as of 08:39, 17 March 2013
People use their means for the most important ends. If they have to give up a unit of their stock, they will continue to satisfy the more important ends. The satisfaction provided by the marginal unit is called marginal utility.[1]
Law of Marginal utility
People make decisions on the margin. No one chooses between "guns" or "butter", but between a definite amount of guns and a definite amount of butter.
As an actor acquires more and more units of a good, he devotes them to successively less and less urgent ends (i.e. ends that are lower on his scale of values). Therefore the marginal utility of a good declines as its supply increases. This is the law of diminishing marginal utility.[2]
References
- ↑ Murray N. Rothbard. "B. The Law of Marginal Utility", Man, Economy and State, online version, referenced 2009-07-07.
- ↑ Robert P. Murphy. "A Study Guide to Murray Rothbard's Man, Economy, and State, with Power and Market", Chapter 1, referenced 2009-07-07.
See also
Bibliography
- Kauder, Emil (1953). "Genesis of the Marginal Utility Theory: From Aristotle to the End of the Eighteenth Century". The Economic Journal 63 (251): 638-650. doi:10.2307/2226451.
- Kauder, Emil (1953). "The Retarded Acceptance of the Marginal Utility Theory". The Quarterly Journal of Economics 67 (4): 564-575. doi:10.2307/1883602.
- Kauder, Emil (1965). A History of Marginal Utility Theory. Princeton: Princeton University Press. OCLC 270555.
Links
- Marginal utility on Wikipedia
- Diminishing Marginal Utility: It's a Law by Art Carden, October 2008
- Marginal Utility Is Not Rocket Science by Frank Shostak, June 2007
- Marginal Utility and Interest Formation by Frank Shostak, July 2007
- What's Wrong with the Utility Function? by Predrag Rajsic, December 2009
- It's the Language of Action, Not a Trick by Predrag Rajsic, February 2010
- What Can the Law of Diminishing Marginal Utility Teach Us? by Thorsten Polleit, February 2011
- The Implications of Human Action: Diminishing Marginal Utility and Supply-and-Demand Curves online video