Chapter
Neoclassical vs. Karl Marx's Theory of Exchange
48:23 - 52:44 (04:20)
The neoclassical theory of exchange is based on the marginal utility and cost of commodities, while Karl Marx's theory focuses on the price ratio and the decline in utility with each exchange.
Clips
The neoclassical theory on exchange ratios is based on the marginal utility and the marginal cost of everything that determines the exchange ratio, changing until the ratio of the marginal utilities is equal to the ratio of the marginal costs.
48:23 - 50:51 (02:28)
Neoclassical theory
Summary
The neoclassical theory on exchange ratios is based on the marginal utility and the marginal cost of everything that determines the exchange ratio, changing until the ratio of the marginal utilities is equal to the ratio of the marginal costs.
ChapterNeoclassical vs. Karl Marx's Theory of Exchange
Episode#303 – Steve Keen: Marxism, Capitalism, and Economics
PodcastLex Fridman Podcast
The concept of utility plays a key role in economics, and it has different meanings depending on the school of thought.
50:51 - 52:44 (01:52)
Marginal Utility
Summary
The concept of utility plays a key role in economics, and it has different meanings depending on the school of thought. Marginal utility, in particular, involves the decline in utility with each exchange, such as giving away a chair for an iPhone.