Editing Marginalism (section)

=== Supply ===
Both neoclassical economics and thorough-going marginalism could be said to explain supply curves in terms of marginal cost; however, there are marked differences in conceptions of that cost.

Marginalists in the tradition of [[Alfred Marshall|Marshall]] and neoclassical economists tend to represent the supply curve for any producer as a curve of marginal pecuniary costs objectively determined by physical processes, with an upward slope determined by [[diminishing returns]].

A more thorough-going marginalism represents the supply curve as a ''complementary demand curve''&nbsp;–  where the demand is ''for'' money and the purchase is made ''with'' a good or service.<ref name="schumMarshScis">Schumpeter, Joseph Alois; ''History of Economic Analysis'' (1954) Pt IV Ch 6 §4.</ref> The shape of that curve is then determined by marginal rates of substitution of money for that good or service.