The Place of Science in Modern Civilisation, and Other EssaysVeblen, Thorstein
Philosophy
The Place of Science in Modern Civilisation, and Other Essays
Veblen, Thorstein
Economics; Science
[29] The current marginal-utility diagrams are not of much use in this
connection, because the angle of the tangent with the axis of ordinates,
at any point, is largely a matter of the draftsman's taste. The abscissa
and the ordinate do not measure commensurable units. The units on the
abscissa are units of frequency, while those on the ordinate are units
of amplitude; and the greater or less segment of line allowed per unit
on either axis is a matter of independently arbitrary choice. Yet the
proposition in the text remains true,--as true as hedonistic
propositions commonly are. The magnitude of the angle of the tangent
with the axis of ordinates decides whether the total (hedonistic)
productivity at a given point in the curve increases or decreases with a
(mechanical) increase of the productive agent,--no student at all
familiar with marginal-utility arguments will question that patent fact.
But the angle of the tangent depends on the fancy of the draftsman,--no
one possessed of the elemental mathematical notions will question that
equally patent fact.
[30] A similar line of argument has been followed up by Mr. Clark for
capital and interest, in a different connection. See _Essentials_, pp.
340-345, 356.
[31] _Cf. Essentials_, pp. 83-90, 118-120.
[32] _Cf._ chap. xxii, especially pp. 378-392.
[33] _Cf._ p. 391.
[34] _Cf. Essentials_, p. 39.
[35] _Essentials_, p. 39.
[36] _Cf. Essentials_, chap. iii, especially pp. 51-56.
[37] This difficulty is recognized by the current marginal-utility
arguments, and an allowance for intensity is made or presumed. But the
allowance admitted is invariably insufficient. It might be said to be
insufficient by hypothesis, since it is by hypothesis too small to
offset the factor which it is admitted to modify.
[38] The limit to which the intensity rises is a margin of the same kind
as that which limits the duration. This supposition, that the intensity
of application necessarily rises to such a pitch that its disutility
overtakes and offsets the utility of the product, may be objected to as
a bit of puerile absurdity; but it is a long time since puerility or
absurdity has been a bar to any supposition in arguments on marginal
utility.
THE LIMITATIONS OF MARGINAL UTILITY[1]
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