Gossen Creek

	Gossen Creek Gossen may refer to: Economics * Hermann Heinrich Gossen (1810–1858), Prussian economist Gossen's laws, his laws concerning such economic concepts as scarcity and marginal utility In economics, utility is the satisfaction or benefit derived by consuming a product. The marginal utility of a Goods (economics), good or Service (economics), service describes how much pleasure or satisfaction is gained by consumers as a result o ... Gossen's second law Other * Dative form of Gossa, a Norwegian island {{disambig ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Hermann Heinrich Gossen Hermann Heinrich Gossen (7 September 1810 – 13 February 1858) was a Prussian economist who is often regarded as the first to elaborate a general theory of marginal utility. Life and work Gossen studied in Bonn, then worked in the Prussian administration until retiring in 1847, after which he sold insurance until his death. Prior to Gossen, a number of theorists, including Gabriel Cramer, Daniel Bernoulli, William Forster Lloyd, Nassau William Senior, and Jules Dupuit had employed or asserted the significance of some notion of marginal utility. But Cramer, Bernoulli, and Dupuit had focussed upon specific problems, Lloyd had not presented any application, and if Senior actually employed to the development of more general theory then he did so in language that caused the application to be missed by most readers. Gossen's book ''Die Entwickelung der Gesetze des menschlichen Verkehrs, und der daraus fließenden Regeln für menschliches Handeln'' (''The Development of the Laws of Hu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Gossen's Laws Gossen's laws, named for Hermann Heinrich Gossen (1810–1858), are three laws of economics: * Gossen's First Law is the "law" of diminishing marginal utility: that marginal utilities are diminishing across the ranges relevant to decision-making. * Gossen's Second Law, which presumes that utility is at least weakly quantified, is that in equilibrium an agent will allocate expenditures so that the ratio of marginal utility to price (marginal cost of acquisition) is equal across all goods and services. :\frac=\frac\,\forall\left(i,j\right) :where :* U is utility :* x_i is quantity of the i-th good or service :* p_i is the price of the i-th good or service * Gossen's Third Law is that scarcity is a precondition for economic value. See also * Marginalism Marginalism is a theory of economics that attempts to explain the discrepancy in the value of goods and services by reference to their secondary, or marginal, utility. It states that the reason why the price of diamonds is ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
picture info	Scarcity In economics, scarcity "refers to the basic fact of life that there exists only a finite amount of human and nonhuman resources which the best technical knowledge is capable of using to produce only limited maximum amounts of each economic good."Samuelson, P. Anthony., Samuelson, W. (1980). Economics. 11th ed. / New York: McGraw-Hill. If the conditions of scarcity didn't exist and an "infinite amount of every good could be produced or human wants fully satisfied ... there would be no economic goods, i.e. goods that are relatively scarce..." Scarcity is the limited availability of a commodity, which may be in demand in the market or by the commons. Scarcity also includes an individual's lack of resources to buy commodities. The opposite of scarcity is abundance. Scarcity plays a key role in economic theory, and it is essential for a "proper definition of economics itself."Montani G. (1987) Scarcity. In: Palgrave Macmillan (eds) ''The New Palgrave Dictionary of Economics''. Palgrav ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Marginal Utility In economics, utility is the satisfaction or benefit derived by consuming a product. The marginal utility of a Goods (economics), good or Service (economics), service describes how much pleasure or satisfaction is gained by consumers as a result of the increase or decrease in Consumption (economics), consumption by one unit. There are three types of marginal utility. They are positive, negative, or zero marginal utility. For instance, you like eating pizza, the second piece of pizza brings you more satisfaction than only eating one piece of pizza. It means your marginal utility from purchasing pizza is positive. However, after eating the second piece you feel full, and you would not feel any better from eating the third piece. This means your marginal utility from eating pizza is zero. Moreover, you might feel sick if you eat more than three pieces of pizza. At this time, your marginal utility is negative. In other words, a negative marginal utility indicates that every unit of good ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Gossen's Second Law Gossen's Second “Law”, named for Hermann Heinrich Gossen (1810–1858), is the assertion that an economic agent will allocate his or her expenditures such that the ratio of the marginal utility of each good or service to its price (the marginal expenditure necessary for its acquisition) is equal to that for every other good or service. Formally, :\frac=\frac~\forall\left(i,j\right) where * U is utility * x_i is quantity of the i-th good or service * p_i is the price of the i-th good or service Informal derivation Imagine that an agent has spent money on various sorts of goods or services. If the last unit of currency spent on goods or services of one sort bought a quantity with ''less'' marginal utility than that which would have been associated with the quantity of another sort that could have been bought with the money, then the agent would have been ''better off'' instead buying more of that other good or service. Assuming that goods and services are continuously divi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]