Abstract
Neoclassical microeconomic theory is closely tied to two important concepts in economics: marginalism and decreasing marginal utility, suggesting that the more we acquire of a given good, the less additional utility we derive from it. Accordingly, if the importance we assign to any good is directly related to its total utility, the price of that good is related to the additional utility we receive from it — marginal utility. This is marginalism.
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© 2006 Marc Lavoie
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Lavoie, M. (2006). Heterodox Microeconomics. In: Introduction to Post-Keynesian Economics. Palgrave Macmillan, London. https://doi.org/10.1057/9780230626300_2
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DOI: https://doi.org/10.1057/9780230626300_2
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-28337-8
Online ISBN: 978-0-230-62630-0
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