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Question
As per the law of diminishing marginal utility, the measurement of utility is assumed to be _____.
Options
ordinal
cardinal
both ordinal and cardinal
none of the above
Solution
As per the law of diminishing marginal utility, the measurement of utility is assumed to be cardinal.
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RELATED QUESTIONS
Explain with reason whether you ‘agree’ or ‘disagree’ with the following statement:
The law of 'diminishing marginal utility' is important in the practice?
Explain any four exceptions of the law of Diminishing marginal utility.
In the law of diminishing marginal utility, Alfred Marshall assumes that the marginal utility of money ______.
When MU is falling, TU is _______.
Exceptions to the law of diminishing marginal utility:
- Cardinal measurement
- Hobbies
- Miser
- Money
Criticisms to the law of diminishing marginal utility:
- Based on unrealistic assumptions
- Not applicable to indivisible and bulky goods
- The law is restricted to satisfaction of a single want.
- In reality, cardinal measurement of utility not possible.
Find the odd word
Exception to law of Diminishing Marginal Utility -
Assertion (A): MU curve slopes upwards.
Reasoning (R): MU goes on diminishing with every successive increase in the consumption of a commodity.
State with reason whether you agree or disagree with the following statement:
There are no exceptions to the law of diminishing marginal utility.
State with reason whether you agree or disagree with the following statement
Marginal utility curve slopes downwards.
State with reasons whether you agree or disagree with the following statement.
There are no exceptions to the law of diminishing marginal utility.
