Question

The Cardinal Approach to Utility analysis assumes that Utility is measurable and quantifiable. This means_______.

• A. Utility can be expressed in numbers
• B. Utility can only be ranked across products
• C. Utility Schedule is derived by the Consumer
• D. All of the above

Answer 1

The correct option is A Utility can be expressed in numbers

In cardinal utility analysis, utility can be measured in terms of cardinal numbers i.e. 1,2,3,4, etc. which is very irrational on the part of consumer to act that way. As while buying a commodity a consumer does not measures his utility in cardinal numbers, they just measure it has high or low.