Practicing Success
Which of the following is NOT an assumption of consumer equilibrium in "Cardinal utility analysis"? |
rational consumer cardinal utility independent utility marginal utility of money is variable |
marginal utility of money is variable |
The major assumptions of consumer equilibrium includes that the consumer is rational and focus on maximising his utility. Apart, from this it is assumed that the utility can be measured in the form of numbers i.e. 1 mango gives 5 utils of satisfaction. It is also assumed that all the commodities offer independent utility and they are not dependent on one another or get influenced. Marginal utility of money is held constant in consumer equilibrium. |