Category: Marginal Cost

In the early 1870s, three economists, William Stanley Jevons, Carl Meneger and Leon Walrus, made similar, though separate, observations in three different countries: England, Austria and Switzerland. They broke with classical economics in terms of the basic goods and services valuation principles. The classical economists based the value of a commodity on its cost of…

I agree with Shapiro and Varian’s statement of technology changes, economic laws do not. I would say economic principles do not change but evolve as technological advances take place and have a significant influence on shaping our modern-day economy. As the technology that surrounds us and is immersed in our daily life advances, it changes…

As we discuss the difference between marginal product and marginal cost in this write-up lets quickly look at the definition of these two words. According to the marginal product of labor refers to the number of products a company can manufacture if it hires more workers or assigns its current workers additional hours. The marginal…