A util could be equivalent to ( taking into account diminishing marginal utility ) the first Big Mac of the year, or to negative the first 400 whip lashes of the day, or whatever.
22.
Consider for instance the law of diminishing marginal utility, according to which utility of an added quantity of a good decreases with the amount of the good that is already in possession of the individual.
23.
To decrease the marginal rate of substitution, the consumer must buy more of the good for which he / she wishes the marginal utility to fall for ( due to the law of diminishing marginal utility ).
24.
In his " Lectures on Population, Value, Poor Laws and Rent " ( 1837 ) he introduced a concise and complete statement of the concept of diminishing marginal utility, and connected demand to value, but he presents neither derivation nor elaboration.
25.
There is also the concept of the diminishing marginal utility of income ( DMUI ), which is that money has no effect on happiness once a certain income level has been reached, and which represents wealth and happiness as having a curvilinear relationship.
26.
Later, in book VII Chapter 1 of " Politics ", Aristotle asserts and some interpret this as capturing a concept of diminishing marginal utility, though there has been marked disagreement about the development and role of marginal utility considerations in Aristotle's value theory.
27.
Given the " law " of diminishing marginal utility, or otherwise given convex indifference curves, the rates are such that the willingness to forgo money for the good or service decreases as the buyer would have ever more of the good or service and ever less money.
28.
Menger did not embrace this hedonic conception, explained diminishing marginal utility in terms of subjective prioritization of possible uses, and emphasized disequilibrium and the discrete; further Menger had an objection to the use of mathematics in economics, while the other two modeled their theories after 19th century mechanics.
29.
He was further noted for producing a theory of interest and of profit in equilibrium based upon the interaction of diminishing marginal utility with diminishing marginal productivity of time and with time preference . and, with modifications including formal disregard for time-preference, by Wicksell's American rival Irving Fisher .)
30.
The law of diminishing marginal utility is similar to the law of diminishing returns which states that as the amount of one factor of production increases as all other factors of production are held the same, the marginal return ( extra output gained by adding an extra unit ) decreases.
