Question

Discuss some similarities and differences between the economic ideas of the Classical Economists and the Marginalists

Please make a separation of similarities and differences thank you :))))

Answer 1

DIfferences between Classical Economics and Marginalist Economics(Neoclassical Economics)

Classical Economics	Marginalist economics
The equilibrium occurs when invetsments are equal to savings.	The equilibrium occurs at the intersection of the demand and supply of the economy.
The value of a good in classical economics is equal to the cost of producing it i,e cost of labour and other inputs. It is more of an inherent property.	The value of a good in a maginalist economy is the function of demand of the good and its supply. It is more of a perceived property.
Here, profit is calculates as the payment to a capitalist for performing his functions.	Here, profit is calculated as the surplus of total revenue over total cost.
The concept of rationality is somewhat missing from classical economics.	Here, buyers want to maximise their utility and sellers wish to maximise their profits.

Similarities between Classical Economics and Marginalist Economics

The similarity between the two concepts was that they both wanted to eastablish and show how the economy worked through their own assumptions and observations. The classical economy came into the picture first and was introduced by Adam Smith followed by the concept of marginalism.