Explain Carl Menger's theory of subjective value.
My theory posits that the value of a good is determined by its ability to satisfy a human want. This satisfaction is not uniform; it diminishes as more of a good is consumed. Therefore, the value of any unit of a good is the value of the least important want it satisfies – the marginal want. This subjective valuation, based on individual needs and preferences, is the bedrock of economic understanding and exchange.
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