ABSTRACT

If one measures both sides of an equation with a common measurement, for example in money, which is of course necessary, then an expression arises that every man recognizes under certain reserves, and it is indifferent to its existence what the marginal proceeds and the marginal costs are "made of". No difference of opinion exists in the demand curve and the sum of money that stands on the left side of the equation. The demand curve is simply the value function, and the marginal proceeds measure a marginal profit. The law of diminishing returns was initially constructed for the agricultural production, and then expanded to every type of production. It can certainly be considered as a purely static state if carefully formulated. In principle, nothing would withhold us from bringing the demand of a good face to face with its supply.