Question

In cardinal utility approach, ___________________.

• A. the utility is measured in its absolute value
• B. the utility can not be measured in its absolute value
• C. utility is calculated with the concept of evaluation with other utility
• D. none of the above

Answer 1

Answer: (A)

the utility is measured in its absolute value

In the concept of cardinal utility approach, the consumers measures the utility which they are deriving from a commodity in cardinal numbers to compare them with the price of the commodity so that they can decide rationally whether to buy the commodity or not.