NeoClassic

The concept of marginal utility arose as rejection of the labor theory of value that had previously been espoused by neoclassical economists. Economists such as Adam Smith taught that the classical labor theory of value argued that the value – or utility – of a commodity was determined by three important factors that went into a product’s creation: the amount of labor that went into producing it, the effort required of the labor, and/or the amount of labor expected of others in exchange of the product. With the turn of the 19^th century, this economic theory was challenged by other schools of thought that believed that there were many ignored factors that determined the utility of a product, mainly the marginal utility theorists.
Continue reading to THE ARTICLE »