Salt Lake Telegram | 1926-03-18 | Page 8 | Money at Work

L ON I J J 41 I 1 0 If C if THE LAW OF DIMINISHING UTILITY A dollar means more to me than a hundred does to him is a just another way of expressing the law of diminishing utility S S r Expressions such as the above are commonly heard but the speaker seldom realizes that In sayIng sayIng saying say- say Ing these words he Is giving ex expression expression expression ex- ex to one of ot the fundamental economic laws He would be apt to say Theres no law about that He has more than I have there have there therefore fore it doesn't mean as much to him But Just that Is the law The first mouthful of food is of unes value to the than man on the verge of starvation It may even save his life lite The second mouthful is also tremendously valuable valuable val val- al but hut after a full meal is eaten he sets little worth on another another another an an- other mouthful df dr food Yet the actual amount of or food Is the same and a day later Intel that scorned bite may again be tremendously im Im- im- im So rises the law aw ot of of diminishing J utility which holds that at an any given time the marginal utility of any commodity to its owner de decreases decreases decreases de- de creases with ever every increase In the stock possessed or consumed Marginal Marginal Mar Mar- ginal utility of course is simply the value alue of the unit of or fhe he stock which is last received such received such as any particular mouthful of food which the hungry man Inan might eat Copyright 1926 Associated Editors Editors Edi Edi- tors tons Inc y