CRITICISMS, LIMITATIONS, OR 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: Criticism and Limitation Read More »
How is the Law of “Equi-marginal utility” helpful in maximizing the utility of a consumer? INTRODUCTION OF LAW OF EQUI-MARGINAL UTILITY We know that the wants of every man are unlimited. Wants arise again and again but man has limited means (income) to fulfill his wants and means have alternative uses. Thus, man always faces …
Measurement of Utility Utility is a Psychological and Personal Concept. There is a deference of opinion, whether measurement of utility can be done or not. Followings are the two approaches are prevalent in this regard.
