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Welfare as an Economic Quantity

Welfare as an Economic Quantity


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Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: CHAPTER in THE LAW OF DIMINISHING UTILITY It is too often assumed that the diminution of utility ? sometimes without regard to regularity in the rate, sometimes with the implication that diminution proceeds at a diminishing rate l ? is the one and only law of the variation of utility. The writer does not deny the importance of this principle or even its primacy. He does believe that economists have in general been in too much haste to state the conclusion of the whole matter and so have left out of account everything but the final stage of the variation of utility. They have assumed that the principle of diminution was universal and have not inquired into conditions. But they have at least made it unnecessary to argue and illustrate the fact of diminution of utility. We shall there-' fore consider the principle first with reference to the differences between it and the conditions it presupposes on the one hand, and the conditions and principles of other kinds of variation of utility on the other. A suggestion of the principal condition to the diminution of utility is contained in the very word supply. The utility ? of course the marginal utility, since the uses of units well within the margin are ordinarily not affected by extension of the supply ? of a unit of a good whose supply is changing diminishes as the supply increases, and increases as the supply diminishes. But can we, in conformity with the sense of this proposition, speak of a supply of such a miscellaneous class of commodities as, for example, food or clothing? If an inhabitant of a northerly climate has a supply of clothing consisting of one coat, what will be the diminution of utility accompanying his acquisition of another article of clothing, say a pair of trousers? Orsuppose he receives successively ...


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Product Details
  • ISBN-13: 9780217653473
  • Publisher: Rarebooksclub.com
  • Publisher Imprint: Rarebooksclub.com
  • Height: 246 mm
  • No of Pages: 64
  • Spine Width: 3 mm
  • Width: 189 mm
  • ISBN-10: 0217653472
  • Publisher Date: 12 Oct 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 132 gr


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