Which of the following is NOT correct with regard to utility? A. Utility expresses the degree of satisfaction that a consumer derives from the consumption of a product. B. Cardinal utility implies that utility can be measured in some way. C. The purpose of consumer behaviour is minimization of consumption expenditure. D. Individual consumer subjectively assigns units of value to the utility derived from the consumption of successive units of a product. E. Ordinal utility involves the ranking of different bundles of goods and services in order of preference.
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This statement is correct. Utility is indeed a measure of the satisfaction or happiness that a consumer derives from the consumption of a good or service. B. This statement is also correct. Cardinal utility is a concept in economics that suggests that utility can Show more…
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