MARGINALIST Meaning and
Definition
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The term "marginalist" refers to an individual, theory, or methodology associated with marginalism. Marginalism is an economic concept that focuses on the analysis of individual economic decisions and their impacts, particularly the marginal change or incremental adjustment in these decisions and their consequences for the allocation of resources.
In this context, a marginalist is someone who adopts the perspective of studying the additional or incremental benefits and costs associated with any economic action or decision. It implies examining the consequences of changes at the margin, as opposed to studying the overall or total effects. By doing so, marginalists aim to understand how individuals make choices based on the perceived value of incremental gains or losses.
Marginalists believe that individuals make rational decisions by comparing the additional satisfaction or utility gained from consuming an additional unit of a good or service, as well as the additional cost or sacrifice required to obtain it. By analyzing these marginal costs and benefits, marginalists seek to explain and predict individual behavior regarding consumption, production, investment, and other economic activities.
The marginalist approach is a central pillar of neoclassical economics, which dominated the discipline from the late 19th century onward. It has significantly influenced economic thinking and policy-making by emphasizing the significance of small changes and marginal adjustments for understanding economic situations and dynamics.
Common Misspellings for MARGINALIST
- marginalis
- marganalise
- narginalist
- karginalist
- jarginalist
- mzrginalist
- msrginalist
- mwrginalist
- mqrginalist
- maeginalist
- madginalist
- mafginalist
- matginalist
- ma5ginalist
- ma4ginalist
- marfinalist
- marvinalist
- marbinalist
- marhinalist
- maryinalist
- martinalist
- margunalist
Etymology of MARGINALIST
The word "marginalist" is derived from the term "marginalism", which refers to a school of economic thought called marginal utility theory. Marginalism emerged in the late 19th century as a response to the classical theories of economics.
The term "marginal" in marginalism refers to the concept of marginal utility, which suggests that the value of a good or service is determined by the additional utility it provides for the consumer. Marginal utility diminishes as one consumes more of a good, meaning that each additional unit of a good or service offers a decreasing amount of satisfaction.
The "-ist" suffix is commonly added to words to denote a person or follower of a particular theory or belief. Therefore, a "marginalist" is someone who adheres to the principles of marginal utility theory and supports the idea of examining economic phenomena at the margin, rather than as a whole.
