Utility analysis or cardinal approach, Managerial Economics

Utility Analysis or Cardinal Approach:

The Cardinal Approach to the theory of consumer behavior is based upon the concept of utility. It assumes that utility is capable of measurement. It can be added, subtracted, multiplied, and so on.

According to this approach, utility can be measured in cardinal numbers, like 1,2,3,4 etc. Fisher has used the term 'Util' as a measure of utility. Thus in terms of cardinal approach it can be said that one gets from a cup of tea 5 utils, from a cup of coffee 10 utils, and from a rasgulla 15 utils worth of utility.

Posted Date: 4/1/2013 2:47:02 AM | Location : United States







Related Discussions:- Utility analysis or cardinal approach, Assignment Help, Ask Question on Utility analysis or cardinal approach, Get Answer, Expert's Help, Utility analysis or cardinal approach Discussions

Write discussion on Utility analysis or cardinal approach
Your posts are moderated
Related Questions
Measurement of Inflation The rate of inflation is measured using the Retail Price Index.  A retail Price Index aims to measure the change in the average price of a basket of g

ISOQUANT ANALYSIS In the long run it is possible for a firm to produce the same output using different combinations of two factors of production.  For instance it the two fact

Profit maximiZation is theoretically the most sound but practically unattainable objective of business finns. Do you agree this statement? If agree give

measurement and scaling techniques in business research

Investment   Investment is the process of increasing the productive capital stock of a country, or can be defined as the production of goods not for immediate consumption.  T

Discuss whether Indian Consumer goods industry is growing at the cost of future Profitability.

list all profession which generate personal income

(i) Do the laws of economics still work today? (use the case discussed in class to answer this question or any other examples) (ii) Provide examples of three factors that can sh

Suppose that Betsy's utility function is given by the equation U=Y0.3 where Y is calculated in thousands of dollars. Betsy's present job pays her $20,000 (Y=20) per year and she ca

Principles of Managerial Economics points