Alfred Marshall - Margin is what Drive Business On Going

Alfred Marshall (1842-1924), a most influential English economist during his time. His famous theory of "marginalism" has a profound direct influence in new capitalist system. The marginalism goes with "the factory will continue to produce its product until its cost break even with the revenue, consumer will continue to purchase until his/her purchase pleasure value break even with the purchase cost". Simply said, the marginalism is a new idea of looking at the new capitalist economy system whereby, the demand and supply of market is relative to its margin. The "margin" is not just refer to fiduciary alone, but the value including perceived pleasure value.

For example, when an ice cream is sold at $2, but to produce $3 of pleasure to the consumer, it would sale.

But, the value of pleasure always going down for the subsequent purchase. Which for instance in this case, the first ice cream purchased will produce $3 pleasure, the second ice cream will only provide $1, the consumer will likely only purchase 1 ice cream at 1 time. If the second ice cream can produce $2.50 pleasure, the chances for each consumer will buy 2 will highly increase.

The concept has believe to be the fundamental to the new perceived idea of "elasticity of price (the ratio of demand to supply relative to its price)"