Analysis of “the Limitations of Marginal Utility” by Thorstein Veblen
Marginal Utility by definition is the additional satisfaction a consumer gains from consuming one more unit of a good or service, which is usually positive, but can be negative. The concept implies that the utility or benefit to a consumer of an additional unit of a product is inversely related to the number of units of that product he already owns. The notion of marginal utility originated with attempts by 19th-century economists to examine and describe the economic validity of price. They believed price was partially determined by a commodity’s utility, which led to a paradox when applied to predominant price associations. This problem, commonly referred to as the …show more content…
I agree with Thorstein Veblen’s critiques. I believe he is correct in his assumptions. As Veblen said, and I agree, often times, rather than just conforming, people choose to change their surroundings. They are not just passive and adapt to whatever is around them, they choose what they want and make the changes necessary to make that change happen.
The primary limitation in my opinion with marginal utility is it is purely subjective, and therefore not measurable by any