Question

Marshalls marginal utility concept is based on the hypothesis that _________.

• A. utility is measurable and quantifiable
• B. utility can be ranked
• C. marginal utility is always constant
• D. marginal utility goes on increasing with addition consumption

Answer 1

Answer: (A)

utility is measurable and quantifiable

Alfred Marshall is a protagonist of the cardinal theory of analysis and hence according to him utility can be measured in numeric terms. Hence, he stated that utility or power of satisfying wants can be measurable and quantifiable.