Cardinal Utility Analysis| Microeconomics

Cardinal Utility Analysis

Cardinal Utility Analysis
Cardinal Utility Approach | Microeconomics
Management Notes

Cardinal Utility Analysis: Cardinal Utility approach is the method of analyzing utility which believes that utility is a quantitative concept i.e, utility can be measured numerically .Its unit of measurement is Utils.The assumptions of cardinal utility analysis are as follows:

  • The consumer is rational.
  • Utility can be measured in cardinal number.
  • Marginal utility of money remains constant.
  • Units of consumption are suitable.

Author: Smirti

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.