Criticism, Limitations and Exceptions of The Law of Equi-Marginal Utility Following are the main reasons for the criticism of the Law of Equi-marginal utility by H. H. Gossen. Although, it is a basic law of economics and consumers knowingly or unknowingly are compelled, to follow this law. This law is applicable in every field of …
Law of Equi-Marginal Utility The Law of “Equi-marginal utility” is helpful in maximizing the utility of a consumer. We know that the wants of every man are unlimited. Wants to arise again and again but man has limited means (income) to fulfil his wants and means have alternative uses. Thus, man always faces the problem …
Measurement of Utility The utility is a Psychological and Personal Concept. There is a difference of opinion, on whether measurement of utility can be done or not. The followings are the two approaches prevalent in this regard.
