The Limitations Of Marginal Utility By Thorstein Veblen

1089 Words 5 Pages
Register to read the introduction… 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 constant method. Utility is a concept, not a form of currency. Besides this though, there are numerous other problems with the theory of marginal utility. According to the marginal utility theory, all people are considered to want very similar things, and react the same way to those things. The law does not take into consideration that the income of the consumer doesn’t remain constant throughout their whole life. Early in life, they may be just starting out and not have a lot of disposable income. A few years later, as the person get a better, steadier job, they may have more money to spend. Marginal utility for a product or service that used to increase your marginal utility when you had less money may no longer do so. Likewise, products that increased utility when you have more money may have mot increased your marginal utility in the

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