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Which one of the following is not the assumption for consumer behavior based on the cardinal utility approach?
Question



Which one of the following is not the assumption for consumer behavior based on the cardinal utility approach?

A.

Maximization of satisfaction

B.

Utility cardinally measurable

C.

Diminishing marginal utility of money

D.

Utility is addictive

Correct option is C

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

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