Home -› marginal analysis

Online dictionary

Social Science Categories

Economics

BEA Economic Analysis Dictionary Environmental Economics Dictionary Dictionary of Political Economy

Education

Learning & Performance Dictionary Petersons Dictionary of Financial Aid Terms Fraternity Dictionary

History

Knighthood & Chivalry Dictionary Medieval Dictionary Castle Dictionary Dictionary of Genealogy

Political Science

Dictionary of National St&ards for Civics & Government Dictionary of Parliamentary Procedure Constitution of the Islamic Republic of Iran Civil Code of the Islamic Republic of Iran

Psychology

Dictionary of Phobia Dictionary of Parental Acceptance Rejection Theory

Sociology

Sociology Dictionary
Definition Of:

marginal analysis

Bible DictionaryDictionary of Political Economy
A concept employed constantly in microeconomic theory (and quite frequently in macroeconomic theory as well) is that of the marginal change in some economic variable (such as quantity of a good produced or consumed), or even the ratio of the marginal change in one variable to the marginal change in another variable. A marginal change is a proportionally very small addition or subtraction to the total quantity of some variable. Marginal analysis is the analysis of the relationships between such changes in related economic variables. Important ideas developed in such analysis include marginal cost , marginal revenue, marginal product, marginal rate of substitution, marginal propensity to save, and so on. In microeconomic theory, "marginal" concepts are employed primarily to explicate various forms of "optimizing" behavior. (Consumers are seen as striving to maximize their utility or satisfaction. Firms are seen as striving to maximize their profits.) The maximum value of such a variable is found by identifying a value of the independent variable such that either a marginal increase or a marginal decrease from that value causes the value of the dependent variable being maximized to fall. (The student of mathematics may recognize the opportunity to apply concepts from differential calculus here, with the various marginal concepts being special names given to first derivatives of particular functions.) The valuation of the benefits (utility ) and the costs of any good is determined "at the margin." For the (individual or collective) decision maker pondering how many units of a good to consume or provide to the market, net total benefits (benefits minus costs ) will always be maximized at that level of consumption (or provision to the market) where the marginal benefit derived from adding the last unit equals the marginal addition to total costs of producing or acquiring that last additional unit. [See also: optimum , cost ]

 

Social Science Dictionary INDEX:


List of Terms: Terms beginning with "A", Page 1

Starts With:  A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 3
Page Number:  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

A: Page 1 of 19.

AAGRA
AAR
ABOLFAZL SHADVAR
ABSOLUTE POVERTY
ACCRUED INTEREST
ACHIEVED STATUS
ACID RAIN
ACUTE DISEASE
ADAPTATION
ADJUSTED GROSS ...AERO
AFFIRMATIVE ACT...
AG
AGE GRADES
AGE STRUCTURE
AGEISM
AGENCIES OF SOC...AGRA
AGRARIAN SOCIET...AGRIBUSINESS
AIDS (Acquired ...
AIR POLLUTION
ALAA
ALIENATION
ANDROGYNY
ANIMISM
ANOMIA
ANOMIE
ANOMIE THEORY
ANTHROPOLOGY
APARTHEID
APEC
APG
APPROPRIATE TEC...ARMS RACE
ARMS TRADE
ARRANGED MARRIA...ASCRIBED STATUS
ASSET PROTECTIO...
ASSETS
ASSIMILATION
AUTHORITARIAN P...
AUTHORITY
AUTOCRATIC RULE
AUTOMATION
Abatement
Abbey
Abbot
Ability-to-Pay ...Ablutophobia
Absolute Advant...
Absolute advant...Abundance
Acarophobia
Accelerator
Acceptance
Acceptance-reje...
Accolade
Accoutrement
Acerophobia
Acheronophobia
Achluophobia
Acid Rain
Acousticophobia
Acquired Endowm...Acquittal
Acre
Acrophobia
Act of Parliame...
Acting Speaker
Active Alumni M...Adaptive Expect...
Additive
Address in Repl...Administrator o...
Admiral
Adoubement
Advance estimate
Adventurous Shi...Adverse Selecti...Aeroacrophobia
Aeronausiphobia
Aerophobia
Affection
Agency problem
Agency problem ...Agency problem ...
Aggregate Deman...Aggregate Expen...Aggregate Suppl...
Aggregate demand
Aggregate supply
Aggression
Agincourt, Batt...Agliophobia
Agoraphobia
Agraphobia
Agrizoophobia
Agyrophobia

Home   |   Contact Us   |   About Us   |  
Copyright © 2008 socialsciencedictionary.com. All rights reserved.