law of diminishing marginal utility

• Marginal utility = incremental utility from consuming one additional unit of a good

• law of diminishing marginal utility

  • Marginal utility - Wikipedia
  • Gossen’s first law
    • Gossen’s law - Wikipedia
  • William Stanley Jevons (September 1, 1835 - August 13, 1882)
    • The Theory of Political Economy” (“Theory of Political Economy”, 1871)
    • Explains the theory of value in terms of “final” utility (= marginal utility)
    • [William Stanley Jevons - Wikipedia https://ja.wikipedia.org/wiki/%E3%82%A6%E3%82%A3%E3%83%AA%E3%82%A2%E3%83%A0%E3%83%BB%E3%82%B9%E3%82% BF%E3%83%B3%E3%83%AC%E3%83%BC%E3%83%BB%E3%82%B8%E3%82%A7%E3%83%B4%E3%82%A9%E3%83%B3%E3%82%BA]
    • [Jevons’ paradox - Wikipedia https://ja.wikipedia.org/wiki/%E3%82%B8%E3%82%A7%E3%83%9C%E3%83%B3%E3%82%BA%E3%81%AE%E3%83%91%E3%83%A9%E3% 83%89%E3%83%83%E3%82%AF%E3%82%B9]
  • Leon Walras - [Described by Joseph Schumpeter as “the greatest of all economists”
    • First formulation of general equilibrium theory
    • Leon Walras - Wikipedia
    • Perfect competition - Wikipedia
  • menger
  • The term “marginal revolution” is used to refer to the progress of the debate on marginal utility around these three, but some now point out that “this kind of debate was going on before the three of them.

• law of equimarginal utility

  • Gossen’s second law

• menger

  • Goods that are not scarce (e.g., air) do not have a price. Non-economic goods
  • Only those goods for which demand is less than supply are economic goods and subject to economics.

• general equilibrium

  • Because of diminishing marginal utility, the marginal utility of a person with many goods is lower than the marginal utility of a person with no goods, so a transaction that increases each other’s utility is established.

• What determines the price? - Adam Smith and recard. - work-value theory: Wages + profit + land rent - It depends on the convenience of the producer.

  • Jevons and Menger. - marginal utility theory
    • It depends on the demand side.

Economics

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