Importance of Law of Equi-Marginal Utility The Law of Equi-Marginal Utility has an important place in economics. The importance of concept cannot be ignored even though it is highly criticized. This applies in every field of economics, which is clear from the following
- Name: Alfred Marshall
- Date of birth: July 26, 1842
- Date of death: July 13, 1924
- Nationality: British
- Occupation: Economist
- Known for: Developing the neoclassical school of economics, writing the textbook Principles of Economics, and founding the Cambridge Economics Department
Alfred Marshall was born in London, England, in 1842. He studied mathematics and philosophy at Cambridge University and then went on to study economics at the University of Göttingen in Germany. After returning to England, Marshall taught economics at Oxford University and Cambridge University. In 1890, he published his textbook Principles of Economics, which became one of the most influential economics textbooks ever written. Marshall’s work helped to establish the neoclassical school of economics, which emphasizes the role of markets and prices in allocating resources. He also founded the Cambridge Economics Department, which is one of the leading economics departments in the world. Marshall died in 1924.
Marshall’s most important contributions
The neoclassical school of economics
Marshall was one of the founders of the neoclassical school of economics, which emphasizes the role of markets and prices in allocating resources. Neoclassical economics is based on the idea that individuals are rational actors who make choices to maximize their utility.
The concept of marginal utility
Marshall developed the concept of marginal utility, which measures the additional benefit that a consumer receives from consuming one more unit of a good or service. Marginal utility is used to explain why demand curves slope downward.
The theory of the firm
Marshall developed the theory of the firm, which explains how firms make decisions about production, pricing, and input use. The theory of the firm is based on the idea that firms are profit-maximizing entities.
The concept of the economy as a whole
Marshall was one of the first economists to develop a comprehensive theory of the economy as a whole. His work helped to explain how different parts of the economy interact with each other.
Marshall’s work has had a profound impact on the field of economics. His ideas are still widely taught and used by economists today.
Measurement of Utility The utility is a Psychological and Personal Concept. There is a difference of opinion, on whether measurement of utility can be done or not. The followings are the two approaches prevalent in this regard.
Introduction to Micro Economics In the present times, the study of economics is done from two viewpoints namely Micro and Macro. From the first viewpoint, the economic problems of various units, like – individuals, families, firms etc. are studied individually, whereas; from the second viewpoint, the same units of persons, families, firms etc., are studied in …
Similarities Between The Definition Of Marshall And Robbins The following similarities are found in the definitions Of Prof Marshall and Prof Robbins
Introduction to Robbins Definition Robbin’s definition of Economics challenged Dr. Marshall’s definition of Economics which was a major improvement over the definition of Adam Smith and other ancient Economists. Before Prof. Lionel Robbins, Prof. Marshall tried to give a complete and faultless definition of economics. At that time people started thinking that Economic Science has …
Criticism Of Marshall Definition Dr. Marshall’s definition of Economics is a major improvement over the definition of Adam Smith and other ancient Economists. This definition was recognized between 1890 to 1932 and it seemed that the controversy relating to the definition of Economics had ended. But a renowned Professor of The London School of Economics, …
Economics is a science of choice-making. Introduction to Marshall Definition Marshall definition of Economics was the first to challenge Adam Smith’s definition. Dr. Alfred Marshall (Born. 26 July 1842, Died 13 July 1924) was the first Economist, who denied the wealth-related definitions of Adam Smith, which was in vogue for a long time, in his …