Israel M. Kirzner (b. 1930)
The primary assumption in traditional economic orthodoxy is that there exists in the marketplace clearly understood means that can be equitably applied in order to reach a desired or given end. Thus, the economist selects any number of variables that are presume to be able to optimize a particular function, be it a profit, a utility or capital. The expected end result is an ideal position. Against this set of input factors, consumers follow a rational process where they balance their acceptance of a product between their expected use for it (marginal utility) and the price they are willing to pay (marginal cost). This understanding then permits the manufacturer (or producer) to balance the expected profits (marginal revenue) for producing more or less product against manufacturing coat (marginal cost) which then determines the optimum amount of product to bring to the market. The procedure is then applied to workers whose marginal income is balanced against marginal disutility (or wanting to go fishing) in deciding how long to work…and so on down the line with any particular condition that is to be optimized.