The Marginalists are followers of a school of thought dating from the 1870s, on which modern neo- classical economics is based. Developed independently by W S Jevons, Carl Menger, and M E L Walras, it argues that economic value is determined by the rate of exchange (or price) of the last unit of a good supplied in the market. This broke with the Classical school's view of value, which was defined as the quantity of labour embodied in a unit of output. Marginal analysis was then applied to the behaviour of consumers and the behaviour of the firm. When applied to a particular firm or to households, this analysis yields a partial equilibrium explanation of choice; applied to the economy as a whole it provides a general equilibrium solution, describing the efficient allocation of all resources. Research Marginalists
Abbreviations
Money
Research Marginalists