File: //old_home_backup/consumeraffairs.org.uk/public_html-20241004153750/marginal-analysis.php
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head><!-- TemplateBeginEditable name="EditRegion2" -->
<title>Economic Consumer Affairs -
Marginal Analysis
</title><!-- TemplateEndEditable -->
<meta name="description" content="Economic Calendar - Bloomberg Economic Calendar" />
<meta name="keywords" content="Economic Data - Economic Data" />
<meta http-equiv="Content-Type" content="text/html; charset=UTF-8" />
<script type="text/javascript" src="/js/jquery-1.4.2.min.js"></script>
<script type="text/javascript" src="/js/script.js"></script>
<script type="text/javascript" src="/js/coin-slider.min.js"></script>
<link href="/style.css" rel="stylesheet" type="text/css" />
<link href="style.css" rel="stylesheet" type="text/css" />
</head>
<body>
<div class="main">
<div class="header">
<div class="header_resize">
<div class="logo"> <a href="/index.php"><img src="/images/logo.gif" width="200" height="130" alt="Economic Consumer Affairs Starting your own business" /></a> </div>
<div class="menu_nav">
<ul>
<li><a href="/index.php"><span>Home</span></a></li>
<li><a href="/applied-economics.php"><span>Applied Economics</span></a></li>
<li><a href="/bank-of-england.php"><span>Banks</span></a></li>
<li><a href="/beveridge-william.php"><span>Beveridge</span></a></li>
<li><a href="/capital-stock.php"><span>Capital Stock</span></a></li>
<li><a href="/earned.php"><span>Income</span></a></li>
<li><a href="/economy/UK/economy.php"><span>UK Economy</span></a></li>
<li><a href="/contact.php"><span>Contact</span></a></li>
</ul>
</div>
<div class="clr"></div>
<div class="slider">
<div id="coin-slider"> <a href="/index.php"><img src="/images/slide1.jpg" width="960" height="180" alt="Bank of England " /></a> <a href="/index.php"><img src="/images/slide2.jpg" width="960" height="180" alt="How to make a start with your own business" /></a> </div>
<div class="clr"></div>
</div>
<div class="clr"></div>
</div>
</div>
<div class="content">
<div class="content_resize"><!-- TemplateBeginEditable name="EditRegion1" -->
<div class="mainbar">
<div class="article">
<h1>
Marginal Analysis
</h1><script type="text/javascript"><!--
google_ad_client = "";
/* links in a line #215670 */
google_ad_slot = "8962789804";
google_ad_width = 468;
google_ad_height = 15;
//-->
</script>
<script type="text/javascript"
src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
</script>
<div id="images3"><img src="/economics-imgs/economics-376.jpg" alt="Marginal Analysis" /></div>
<p>
Marginal Analysis, the core of modern economic theory, based on analysis of the utility of successive units of a commodity (or service) or the cost of successive units of a factor of production. Marginal analysis first emerged in a distinct form in 1871 in W. S. Jevons's Theory of Political Economy, Carl Monger's Principles of <strong>Economics</strong> and Leon Wairas's Elements d'economie politique pace, 1874. Their contribution was mainly in the theory of value where marginal utility explained the consumer's demand for goods. The marginal utility analysis of Jevons and Menger explained for the first time the allocation of expenditure by the consumer, and formulated the 'maximization' solution. By 2011 the concept of the margin had been applied to the theory of distribution and the allocation problem of the producer. Today it is a tool of analysis found in all branches of economic theory.<br /><br />Since successive units of a commodity have differing degrees of significance, interest attaches to the effects of the loss or addition of the 'marginal' (or 'last') unit. This applies to consumer goods, to factors of production and to the services rendered by them. Marginal analysis thus deals with the logic of choice. It is applied wherever limited resources have to be allocated amongst a variety of ends, and where the object is to maximize satisfaction. The consumer allocates income in order to derive the most satisfaction from the whole of it. The producer allocates expenditure on various factors of production out of limited resources in order to maximize monetary returns, earnings or 'profit'.<br /><br />The solution to the allocation problem of the consumer is based on the law of diminishing marginal utility: equilibrium in distributing a given income is reached when total utility or satisfaction is maximized; this requires that the marginal utility per unit of expenditure is the same for all goods. Similarly the solution to the allocation problem of the producer is based on the law of variable proportions: equilibrium in the distribution of a given outlay is reached when factors are combined in the proportion which maximizes physical output (or minimizes the cost of producing it); i.e. when marginal physical product per unit of outlay is the sane for every factor. Full productive equilibrium, however, requires the output that will maximize profits. Thus a further condition of equilibrium must be added that the use of all factors will be expanded to the point where the additional (marginal) cost per unit of output is equal to the additional (marginal) revenue per unit obtained from its sale.
</p>
<h2>
Examples Economic Calendar - Bloomberg Economic Calendar
</h2>
<ul>
<div id="images4"><img src="/econ/images-economy-491.jpg" alt="Marginal Analysis" /></div>
<li><a href="/market-in-its.php"> Market: general economic sense </a></li>
<li><a href="/menger-carl.php"> Menger Carl </a></li>
<li><a href="http://www.iie.com/" target="_blank"> The Peterson Institute For International Economics Is A Private, Nonprofit, Nonpartisan Research Institution Devoted To The Study Of International Economic Policy. Since 1981 The Institute Has Provided Timely, Objective Analysis And Concrete Solutions To Key International Economic Problems. </a> <img src="/images/icon_external.gif" width="9" height="9" /></li>
<li><a href="http://www.waterstones.com/waterstonesweb/products/myles+kelleher/economics+definitions/8944690/" target="_blank"> Economics Definitions (book) By Myles Kelleher (2012): Waterstones.com </a> <img src="/images/icon_external.gif" width="9" height="9" /></li>
</ul>
<br />
<p>
<spc: %other />
</p>
<div class="clr"></div>
</div>
</div>
<!-- TemplateEndEditable -->
<div class="sidebar">
<div class="gadget">
<h2 class="star"><a href="/index.php">
Marginal Analysis
</a></h2>
<div class="clr"></div>
<script async src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>
<!-- spamdex-display -->
<ins class="adsbygoogle"
style="display:block"
data-ad-client="ca-pub-2121528995419082"
data-ad-slot="8029362605"
data-ad-format="auto"></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script>
</script>
<script type='text/javascript'><!--// <![CDATA[
OA_show(53);
// ]]> --></script>
<p><a href="/index.php">Economics</a> uses everyday words in a more specific sense than that in which they are used by the non-economist. 'Demand', 'supply', cost', 'market', 'rent' and many other words do not mean the same to economists as they do in everyday usage.<br />
</p>
<p><strong>Recent Reads</strong><br />
<a href="/bank-of-england.php">Banks</a>
<a href="/capital-stock.php">capital</a>
<a href="/markets/economics/debt-conversion.php">debt</a>
<a href="/division-of-labour.php">labour</a>
<a href="/trade/UK/growth-economic.php">economy</a>
<a href="/hume-david.php">David Hume</a>
<a href="/land-tax.php">land tax</a>
<a href="/law-economic.php">law</a>
<a href="/marx-karl.php">Karl Marx</a>
<a href="/pension-term-used.php">pensions</a> <br />
. </p>
<p><a href="http://www.economist.com/business-finance" target="_blank"><img src="/images/econm.gif" alt="<spc: %meta_title />" width="267" height="553" border="0" /></a></p>
<p> </p>
</div>
</div>
<div class="clr"></div>
</div>
</div>
<div class="fbg">
<div class="fbg_resize">
<div class="col c1">
<h2><span>consumeraffairs.org.uk
</span></h2>
<p>Since then his writings have in turn been increasingly reinterpreted as a special case both by some followers and by some economists who had not wholly accepted his writings. The content of economics is in a state of change, and this consumeraffairs.org.uk
site is therefore not a final statement of economic doctrine.<br /><br /><strong>Economics</strong> is in the last resort a technique of thinking. The reader will therefore need to make an intellectual effort, more substantial for some web entries than for others, to get the most interest and value out of this website.<br />
</p>
</p>
</div>
<div class="col c2">
<h2>Ecomical Favourites</h2>
<ul id="spcFooterLinks"><li><a href="/loss-leader.php" title="Loss Leader" alt="Loss Leader">Loss Leader</a></li><li><a href="/macro-economics-study.php" title="Macro Economics Study" alt="Macro Economics Study">Macro Economics Study</a></li><li><a href="/malthus-thomas-robert.php" title="Malthus Thomas Robert" alt="Malthus Thomas Robert">Malthus Thomas Robert</a></li><li><a href="/malthusian-theory.php" title="Malthusian Theory" alt="Malthusian Theory">Malthusian Theory</a></li><li><a href="/managed-currency.php" title="Managed Currency" alt="Managed Currency">Managed Currency</a></li><li><a href="/managerial-revolution-first.php" title="Managerial Revolution First" alt="Managerial Revolution First">Managerial Revolution First</a></li><li><a href="/marginal-analysis.php" title="Marginal Analysis" alt="Marginal Analysis">Marginal Analysis</a></li><li><a href="/market-in-its.php" title="Market In Its" alt="Market In Its">Market In Its</a></li><li><a href="/market-central-market.php" title="Market Central Market" alt="Market Central Market">Market Central Market</a></li><li><a href="/market-research-method.php" title="Market Research Method" alt="Market Research Method">Market Research Method</a></li></ul></div>
<div class="clr"></div>
</div>
</div>
<div class="footer">
<div class="footer_resize">
<p class="lf">© Copyright 2018 | <a href="mailto:contact@consumeraffairs.org.uk">contact@consumeraffairs.org.uk
</a> |<a href="http://www.economics.ox.ac.uk/" title="Economics" target="_blank"> Economics</a> | <a href="https://www.sandrajonaspublishing.com/">Sandra Blackbush Publishing Unlimited</a> | One Heddon Street | Mayfair | London | W1B 4BD | Consumer Affairs was a not-for-profit organisation offering free advice about debt and money management via guides and reports on its website. </p>
</div>
</div>
</div>
<script type="text/javascript">
var _gaq = _gaq || [];
_gaq.push(['_setAccount', 'UA-31916544-1']);
_gaq.push(['_trackPageview']);
(function() {
var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true;
ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js';
var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s);
})();
</script><script>
(function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){
(i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),
m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)
})(window,document,'script','https://www.google-analytics.com/analytics.js','ga');
ga('create', 'UA-87073664-1', 'auto');
ga('send', 'pageview');
</script></body>
</html>