One of the assumptions of the cardinal approach is
ECONOMICS
JAMB 2013
One of the assumptions of the cardinal approach is
- A. diminishing marginal rate of substitution
- B. the consistency and transitivity of choice
- C. that total utility depends on the quantity of the commodities consumed
- D. unstable marginal utility of money
Correct Answer: C. that total utility depends on the quantity of the commodities consumed
Explanation
According to the Cardinalist school, the utility/satisfaction which is derived from the consumption of a good is a function of the quantity of that good alone.
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