As defined by the Austrian School of economics the marginal use of a good or service is the specific use to which an agent would put a given increase, or the specific use of the good or service that would be abandoned in response to a given decrease.[1] The usefulness of the marginal use thus corresponds to the marginal utility of the good or service.[2]
On the assumption that an agent is economically rational, each increase would be put to the specific, feasible, previously unrealized use of greatest priority, and each decrease would result in abandonment of the use of lowest priority amongst the uses to which the good or service had been put.[1] And, in the absence of a complementarity across uses, the “law” of diminishing marginal utility will obtain.[3][2]
The Austrian School of economics explicitly arrives at its conception of marginal utility as the utility of the marginal use, and “Grenznutzen” (the Austrian School term from which “marginal utility” was originally derived in translation[4]) literally means border-use; other schools usually do not make an explicit connection.[2]
^ abvon Wieser, Friedrich; Über den Ursprung und die Hauptgesetze des wirtschaftlichen Wertes [The Nature and Essence of Theoretical Economics] (1884), p. 128.
^ abcMc Culloch, James Huston; “The Austrian Theory of the Marginal Use and of Ordinal Marginal Utility”, Zeitschrift für Nationalökonomie 37 (1977) #3&4 (September).
marginal, defined, austrian, school, economics, marginal, good, service, specific, which, agent, would, given, increase, specific, good, service, that, would, abandoned, response, given, decrease, usefulness, marginal, thus, corresponds, marginal, utility, goo. As defined by the Austrian School of economics the marginal use of a good or service is the specific use to which an agent would put a given increase or the specific use of the good or service that would be abandoned in response to a given decrease 1 The usefulness of the marginal use thus corresponds to the marginal utility of the good or service 2 On the assumption that an agent is economically rational each increase would be put to the specific feasible previously unrealized use of greatest priority and each decrease would result in abandonment of the use of lowest priority amongst the uses to which the good or service had been put 1 And in the absence of a complementarity across uses the law of diminishing marginal utility will obtain 3 2 The Austrian School of economics explicitly arrives at its conception of marginal utility as the utility of the marginal use and Grenznutzen the Austrian School term from which marginal utility was originally derived in translation 4 literally means border use other schools usually do not make an explicit connection 2 See also editMarginalismReferences edit a b von Wieser Friedrich Uber den Ursprung und die Hauptgesetze des wirtschaftlichen Wertes The Nature and Essence of Theoretical Economics 1884 p 128 a b c Mc Culloch James Huston The Austrian Theory of the Marginal Use and of Ordinal Marginal Utility Zeitschrift fur Nationalokonomie 37 1977 3 amp 4 September Georgescu Roegen Nicholas Utility International Encyclopedia of the Social Sciences 1968 Streissler E Wieser Friedrich Freiherr von The New Palgrave A Dictionary of Economics v 4 1987 p 921 Retrieved from https en wikipedia org w index php title Marginal use amp oldid 1076444291, wikipedia, wiki, book, books, library,
