Principles of Economics (Menger book)
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OCLC 271580456 | |
Principles of Economics (
Summary
Menger advanced his theory that the marginal utility of goods, rather than labor inputs, is the source of their value. This
Menger stressed uncertainty in the making of economic decisions, rather than relying on "
Menger saw that time was the root of uncertainty within economics. As production takes time then producers have no certainty on the supply or demand for their product. Thus the price of the finished product bears no resemblance to the costs of production, since the two represent market conditions at very different points in time.
The
According to
As the price of a commodity is the average cost of production, it includes the fact that a tiny proportion of commodities may be found, although finding goods is hardly typical of modern manufacturing processes.
Marginal utility as the source of value meant that the perceived need for an object was seen to be dictating the value, on an individual rather than a general level. The implication was that the individual mind is the source of economic value.
Although Menger accepted the
Reception
See also
Notes
- ^ Menger, Carl (1871). Grundsätze der Volkswirthschaftslehre, Erster, Allgemeiner Theil. Wien: Wilhelm Braumüller – via Internet Archive.; Translated as Principles of Economics, First, General Part. Translated by Dingwall, James; Hoselitz, Bert F. Glencoe, Illinois: The Free Press. 1950 – via Internet Archive.
- Hayek, F.A. (1978). "The Place of Menger's Grundsätze in the History of Economic Thought". New Studies in Philosophy, Politics, Economics and History of Ideas. London and Chicago: Routledge and University of Chicago Press. pp. 270-282.