A major assumption in cardinal utility theory is that
ECONOMICS
JAMB 2009
A major assumption in cardinal utility theory is that
- A. utility is measureable
- B. utility is not measurable
- C. total utility equals marginal utility
- D. total utility is constant
Correct Answer: A. utility is measureable
Explanation
One of the assumptions of the cardinal utility approach is that money must measure the same amount of utility under all circumstances.
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