Marginal Utility - Marginalist Theory

Marginalist Theory

Marginalism explains choice with the hypothesis that people decide whether to effect any given change based on the marginal utility of that change, with rival alternatives being chosen based upon which has the greatest marginal utility.

Read more about this topic:  Marginal Utility

Famous quotes containing the word theory:

    It makes no sense to say what the objects of a theory are,
    beyond saying how to interpret or reinterpret that theory in another.
    Willard Van Orman Quine (b. 1908)