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Home > Art, Film & Photography > Marginal Concepts: Marginalism, Marginal Utility, Praxeology, Marginal Cost, Human Action, Marginal Revenue, Marginal Value, Marginal Concepts
Marginal Concepts: Marginalism, Marginal Utility, Praxeology, Marginal Cost, Human Action, Marginal Revenue, Marginal Value, Marginal Concepts

Marginal Concepts: Marginalism, Marginal Utility, Praxeology, Marginal Cost, Human Action, Marginal Revenue, Marginal Value, Marginal Concepts


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About the Book

Purchase includes free access to book updates online and a free trial membership in the publisher's book club where you can select from more than a million books without charge. Chapters: Marginalism, Marginal Utility, Praxeology, Marginal Cost, Human Action, Marginal Revenue, Marginal Value, Marginal Concepts, Gossen's Second Law, Man, Economy, and State, Marginal Use, Gossen's Laws. Excerpt: Gossen's laws, named for Hermann Heinrich Gossen (1810 1858), are three ostensible laws of economics: where References (URLs online) See also (online edition) A hyperlinked version of this chapter is at Gossen's Second "Law," named for Hermann Heinrich Gossen (1810 1858), is the assertion that an economic agent will allocate his or her expenditures such that the ratio of the marginal utility of each good or service to its price (the marginal expenditure necessary for its acquisition) is equal to that for every other good or service. Formally, where Informal derivation Imagine that an agent has spent money on various sorts of goods or services. If the last unit of currency spent on goods or services of one sort bought a quantity with less marginal utility than that which would have been associated with the quantity of another sort that could have been bought with the money, then the agent would have been better off instead buying more of that other good or service. Assuming that goods and services are continuously divisible, the only way that it is possible that the marginal expenditure on one good or service should not yield more utility than the marginal expenditure on the other (or vice versa ) is if the marginal expenditures yield equal utility. Formal derivation Assume that utility, goods, and services have the requisite properties so that is well defined for each good or service. An agent then optimizes subject to a budget constraint where Using the method of Lagrange multipliers, one constructs the function and finds the first-order conditions for optimization as ...


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Product Details
  • ISBN-13: 9781155561967
  • Publisher: Books LLC
  • Publisher Imprint: Books LLC
  • Height: 152 mm
  • Sub Title: Marginalism, Marginal Utility, Praxeology, Marginal Cost, Human Action, Marginal Revenue, Marginal Value, Marginal Concepts
  • Width: 229 mm
  • ISBN-10: 1155561961
  • Publisher Date: 05 May 2010
  • Binding: Paperback
  • Spine Width: 5 mm
  • Weight: 136 gr


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