Criticism of cardinal utility analysis

Marshall's cardinal utility analysis has been criticised on the following grounds; -

1) Utility cannot be measured cardinally

2) Money is an imperfect measure of utility

3) Consumer is not of a calculating mind

4) MArginal utility of money is not constant

5) It does not study the income,  price and substitution effect

6) It fails to clarify the study of inferior and Giffen goods

Comments

Popular posts from this blog

Cardinal Utility Analysis

measurement of utility

relationship between tu and mu