The Principles of Economics, with Applications to Practical Problems — John Shaqi
The Principles of Economics, with Applications to Practical ProblemsFetter, Frank A. (Frank Albert)
General
The Principles of Economics, with Applications to Practical Problems
Fetter, Frank A. (Frank Albert)
Economics
The proposition must be understood as applying to the gratification
resulting from each added portion of the sensation. There is a maximum
point in the gratification afforded by any nerve-stimulus. A man coming
in from the winter's storm and holding out his hands before the fire,
feels an intense pleasure in the grateful warmth; a few moments later,
the same heat becomes unpleasant. In winter we wish for a moderation of
the temperature; on the sultry days of summer, we think of a cool breeze
as the most to be desired of all things. Whether the temperature rises
or falls, there is a point beyond which the change is no longer an
addition to, but a subtraction from, pleasure. A man, however hungry at
first, may be made miserable if forced to eat beyond his capacity. Each
added portion of the good consumed contributes to the gratification up
to a certain point. The sum of these pleasurable sensations may be
called the total gratification, which finally reaches satisfaction or
fullness. Then begins what may be called in algebraic phrase a "negative
gratification" which, if it becomes large enough, will make the total
gratification a negative quantity. Each added portion, dose or increment
beyond a certain point reduces thus the welfare of the user. One may
have too much of a good thing.
[Sidenote: The marginal utility]
4. _Marginal utility is the gratification afforded by the added portion
of the good._ The marginal dose, increment, or portion is that which may
be logically considered as coming last in the case of any good or group
of goods divisible into small parts. In considering the strict theory of
the case, in order to get at the principle involved, the doses may be
spoken of as infinitesimally small. The marginal utility expresses the
importance that men attach to one unit of this kind of goods under the
particular circumstances at the moment existing, and not under certain
conceivable conditions which do not in fact exist or need to be taken
into account by the persons affected. The marginal unit of a homogeneous
supply cannot be considered to have a greater utility than any other
unit at the moment, and therefore the product of the marginal utility by
the number of units, gives the total measure of importance of the supply
then and there, and this is the value.
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