Assumption of the Law:
The law of equi-marginal utility is based on the following assumptions;
- The consumer is a rational economic man who seeks to maximize his total satisfaction.
- Utility is measurable in cardinal terms.
- The consumer has a given scale of preference for the goods in consideration. He has perfect knowledge of utility derived.
- Prices of goods are unchanged.
- Income of the consumer is fixed.
Note: This is published for the internal use (of St. Philomena's College students) only and hence requires verification.
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