Question

Limitation of Cardinal approach of Marginal utility theory is/are that _________.

• A. marginal utility is not measurable
• B. MU is not additive
• C. it makes unrealistic assumptions
• D. all

Answer 1

Answer: (D)

all

In cardinal approach of marginal utility we try to measure our satisfaction in terms of cardinal numbers which is very unrealistic in real life situation. So the application of the whole concept is very vague as we usually measure our satisfaction as high or low.