Utility Analysis

0 45

Utility Analysis

Two techniques are used in the analysis of consumer’s behavior.

  1. Utility analysis: Marshallian or cardinal approach.

  2. Indifference curve technique: Modern of ordinal approach.

Here the utility analysis (Marshallian approach) has been discussed. In view of this two laws. Law a Diminishing Marginal Utility (DMU) and law of Equimarginal Utility (EMU) have been explained in next topics.

Leave A Reply

Your email address will not be published.