ABSTRACT

Presuming the curve of utility of the “General good” to be 60, 50, 40, 32, 28, 20, 17, etc., and the curve of disutility of labour to be 4, 8, 16, 32, 64, etc., I will produce 4 units with a marginal utility which is equivalent to a marginal disutility of 32, and with a total utility of 60 + 50 + 40 + 32 = 182 UU, acquired for a total sacrifice of 60 UU. The difference 182 − 60 = 122 UU is my surplus of utility by producing. This surplus will be neither more nor less because money intervenes, and the process by which I personally manufacture the desired commodity is dissolved into two: (a) one by which I sacrifice the disutility of labour and for this obtain a money wage, and (b) a second, by which I sacrifice my money wage and obtain the desired object.