Economics · Cardinal Utility Theory
Which of the following statements about Cardinal Utility Theory are correct? A. Cardinal utility theory assumes that utility can be measured in cardinal numbers such as utils. B. The marginal utility of money is assumed to be constant in Marshallian utility analysis. C. According to the law of diminishing marginal utility, as consumption of a good increases (ceteris paribus), total utility eventually decreases from the very first unit. D. Consumer equilibrium under cardinal utility is achieved when MUx/Px = MUy/Py = MUm. E. Giffen paradox is consistent with the law of diminishing marginal utility.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A, B, C and D only
- 2B, D and E only
- 3A, C and E only
- 4A, B and D only✓
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A, B and D only
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