Assumptions of Indifference Curve

Assumptions of Indifference Curve Analysis In indifference curve analyses the consumer behavior is based on some assumptions. Prof. W. J. Baumol and others have taken the following major assumptions. Perfect Knowledge. A consumer is assumed to have complete knowledge regarding the type of goods available, their prices and their capacity to satisfy a want. He […]

Criticism of Cardinal Utility Analysis  

Criticism of Cardinal Utility Analysis   The chief points of criticism, which are generally pointed out against the utility analysis approach, are the following: – Cardinal measurement of utility is not possible. It is pointed out that the utility analysis is based on the Cardinal Number system and not on the ordinal number system. According to […]