On the Austrian Notion of “Cost” in 1889

Abstract

Suppose that an isolated colonist has just reaped his grain crop. The yield is five full sacks. He destines each sack for a specific purpose: the first sackful of grain must serve him to survive, the second one to keep him in full strength, the third will serve as fodder for his poultry, enabling him to enrich his diet with meat. He plans to use the fourth for distilling corn brandy, a luxury to him. For lack of better he destines the fifth sackful of grain for feeding his parrots: their antics amuse him. So, unmistakably, the five uses are of diminishing importance to him.

Citation

Elzas, B.D. (1988), "On the Austrian Notion of “Cost” in 1889", Journal of Economic Studies, Vol. 15 No. 3/4, pp. 36-54. https://doi.org/10.1108/eb002669