Q342
Under Marginal utility analysis, utility is assumed to be a
A.
Cardinal concept
AnswerB.
Ordinal concept
C.
Indeterminate concept
D.
None of the above
Answer: Option A
Solution
Answer: Option A
Solution:
Under Marginal utility analysis, utility is assumed to be a Cardinal concept. The Cardinal Utility approach is propounded by neo-classical economists, who believe that utility is measurable, and the customer can express his satisfaction in cardinal or quantitative numbers, such as 1,2,3, and so on.