The cardinal utility approach to consumer behaviour is based on the assumption that individuals can assign numerical values or utility to the satisfaction or happiness they derive from consuming goods and services. Some of the key assumptions of the cardinal utility approach include:
Assumptions of consumer behaviour based on the cardinal utility approach.
O Rationality
O Continuity
O Diminishing marginal utility
O Independence of wants
O Transitivity
English
10 Questions
20 Marks
12 Mins English English50 Questions100 Marks60 Mins English English10 Questions20 Marks12 Mins English| LIST-I Concept |
LIST-II Formula |
| A. Total Utility |
I. MU1+MU2+______MUn |
| B. Marginal Utility |
II. TUn−TUn−1 |
| C. Average Fixed Cost |
III. ΔTC/ΔQ |
| D. Marginal Cost |
IV. TFC/Q |
Assertion A: Equilibrium price of a commodity is the price at which the quantity demanded of the commodity equals the quantity supplied.
Reasoning R: Equilibrium is the condition, once determined, tends to persist in time.
Choose the right options:
Match the market forms in List I and the role of the selling costs in List II
Choose the correct answer from the options given below:
Which of the following relationships is true in a modal distribution?
Assertion (A): Firms opt for buying an asset if the equivalent annual cost of ownership and operation is less than the best lease rate it can get.
Reason (R): Operating leases are attractive to equipment users if the lease payment is less than the user's equivalent annual cost of buying the equipment.
Choose the most appropriate answer from the options given below:
‘Constraint Optimization’ is closer to which of the following objectives of a business firm?
Which of the following is correct?
Suggested Test Series
Suggested Test Series
