Marginalism

The study of marginal theories and relationships within economics. The key focus of marginalism is how much extra use is gained from incremental increases in the quantity of goods created, sold, etc. and how those measures relate to consumer choice and demand.

Marginalism covers such topics as marginal utility, marginal gain, marginal rates of substitution, and opportunity costs, within the context of consumers making rational choices in a market with known prices.

The idea of marginalism, and its value in establishing market prices as well as supply and demand patterns, was popularized by British economist Alfred Marshall in a publication dating back to 1890.

Marginalism is sometimes criticized as one of the "fuzzier" areas of economics, as much of what is proposed is hard to accurately measure, such as an individual consumers' marginal utility. Also, marginalism relies on the assumption of (near) perfect markets, which do not exist in the practical world. Still, the core ideas of marginalism are generally accepted by most economic schools of thought, and are still used by businesses and consumers to make choices and substitute goods.


Investment dictionary. . 2012.

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  • marginalism — MARGINALÍSM s.n. Teorie economică ce consideră valoarea de schimb a unui produs ca fiind determinată de ultima unitate disponibilă din acel produs. – Din fr. marginalisme. Trimis de claudia, 01.10.2003. Sursa: DEX 98  marginalísm s. n. Trimis de …   Dicționar Român

  • Marginalism — Economics …   Wikipedia

  • marginalism — noun The use of marginal analysis to solve large classes of microeconomic problems. See Also: marginal cost, marginal revenue, marginal utility …   Wiktionary

  • marginalism — mar·gin·al·ism …   English syllables

  • marginalism — /ˈmadʒənəlɪzəm/ (say mahjuhnuhlizuhm) noun a type of economic analysis which places stress on marginal factors in the economy …   Australian English dictionary

  • marginalism — ˈmärjə̇nəlˌizəm noun ( s) : economic analysis that stresses use of marginal qualities in the determination of equilibrium …   Useful english dictionary

  • Marginal utility — In economics, the marginal utility of a good or service is the utility gained (or lost) from an increase (or decrease) in the consumption of that good or service. Economists sometimes speak of a law of diminishing marginal utility, meaning that… …   Wikipedia

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