Fromy: Bhm-Bawerk’s concept of ‘marginal utility’ is a perfect illustration of human action

Austrian economist Eugen von Böhm-Bawerk is best known as a great critic of the Marxist view of economics.

He also helped to clarify the meaning of the concept of marginal utility, a fundamental principle of the Austrian School of economics developed by Carl Menger .

He added an essential notion that would later become known as opportunity cost.

Ulrich Fromy: The study of praxeology is all about human action and why people act.

He says the study of human action refuses to render normative moral judgement on the choices made by individuals.

As the pioneer’s stock of goods increases, his living conditions improve, he says.