The marginal theory of value focuses on consumption rather than production. It says that the utility a commodity is the source of its value. Specifically, it is interested in marginal utility, the additional satisfaction gained from consuming one more unit of the commodity. Marginal utility often diminishes if many units have already been consumed, leading to a decrease in the exchange value of commodities that are abundantly available. Both the labor theory and the marginal theory were later challenged by the Sraffian theory of value.
The marginal theory of value focuses on consumption rather than production. It says that the utility a commodity is the source of its value. Specifically, it is intere.sted in marginal utility the additional satisfaction gained from consuming one more unit of the commodity. Marginal utility often diminishes if many units have already been consumed leading to a decrease in the exchange value of commodities that are abundantly available Both the labor ,theory and the marginal theory were later challenge,d by the Sraffian theory of value.