| Date post: | 26-Feb-2018 |
| Category: |
Documents |
| Upload: | sajal-chakarvarty |
| View: | 216 times |
| Download: | 0 times |
of 83
7/25/2019 Utility Law eco
1/83
Cardinal Utility Theory
The term was given by Jeremy Bentham. Alfred
Marshall (184!1"4# $n his boo% &rin'iles of)'onomi's. A''ording to Bentham *tility is thedi+eren'e between the leas*re en,oyed andthe ain s*+ered. A''ording him and many
other e'onomist *tility is meas*rable in *tils.
Total Utility $t is s*m of all *tilities derivedfrom the total n*mber of *nits 'ons*med.
T*n- *1 * */00.*nMarginal Utility $t is *tility form 'ons*mingaddition *nit of the 'ommodity.
MU = TunT*n!1
7/25/2019 Utility Law eco
2/83
2elation between MU3TU and AUNumber of
Units
Total Utility Marginal
Utility
Average Utility
1 1 1 1
18 8 "
/ 4 5 8
4 8 4 6
7 / 5
5 / 7
6 8 ! 4
8 4 !4 /
7/25/2019 Utility Law eco
3/83
7/25/2019 Utility Law eco
4/83
aw of )9*i! Marginal Utility
The law of e9*i!marginal *tilitystates that a 'ons*mer 'an ma:imisehis satisfa'tion by allo'ating his
in'ome among vario*s *ses in a s*'ha manner that marginal *tility ofmoney in every *se is e9*al.
): $n'ome ! ; // &ri'e of A !; 7
&ri'e of B ! ;/
&ri'e of C ! ;
7/25/2019 Utility Law eco
5/83
7/25/2019 Utility Law eco
6/83
7/25/2019 Utility Law eco
7/83
7/25/2019 Utility Law eco
8/83
7/25/2019 Utility Law eco
9/83
7/25/2019 Utility Law eco
10/83
7/25/2019 Utility Law eco
11/83
aw of e9*i!marginal *tility
7/25/2019 Utility Law eco
12/83
7/25/2019 Utility Law eco
13/83
7/25/2019 Utility Law eco
14/83
7/25/2019 Utility Law eco
15/83
7/25/2019 Utility Law eco
16/83
7/25/2019 Utility Law eco
17/83
7/25/2019 Utility Law eco
18/83
7/25/2019 Utility Law eco
19/83
7/25/2019 Utility Law eco
20/83
7/25/2019 Utility Law eco
21/83
7/25/2019 Utility Law eco
22/83
7/25/2019 Utility Law eco
23/83
7/25/2019 Utility Law eco
24/83
7/25/2019 Utility Law eco
25/83
7/25/2019 Utility Law eco
26/83
7/25/2019 Utility Law eco
27/83
7/25/2019 Utility Law eco
28/83
7/25/2019 Utility Law eco
29/83
7/25/2019 Utility Law eco
30/83
7/25/2019 Utility Law eco
31/83
7/25/2019 Utility Law eco
32/83
7/25/2019 Utility Law eco
33/83
7/25/2019 Utility Law eco
34/83
7/25/2019 Utility Law eco
35/83
7/25/2019 Utility Law eco
36/83
7/25/2019 Utility Law eco
37/83
7/25/2019 Utility Law eco
38/83
7/25/2019 Utility Law eco
39/83
7/25/2019 Utility Law eco
40/83
7/25/2019 Utility Law eco
41/83
7/25/2019 Utility Law eco
42/83
7/25/2019 Utility Law eco
43/83
7/25/2019 Utility Law eco
44/83
7/25/2019 Utility Law eco
45/83
7/25/2019 Utility Law eco
46/83
7/25/2019 Utility Law eco
47/83
7/25/2019 Utility Law eco
48/83
7/25/2019 Utility Law eco
49/83
7/25/2019 Utility Law eco
50/83
7/25/2019 Utility Law eco
51/83
7/25/2019 Utility Law eco
52/83
7/25/2019 Utility Law eco
53/83
7/25/2019 Utility Law eco
54/83
7/25/2019 Utility Law eco
55/83
7/25/2019 Utility Law eco
56/83
7/25/2019 Utility Law eco
57/83
7/25/2019 Utility Law eco
58/83
7/25/2019 Utility Law eco
59/83
7/25/2019 Utility Law eco
60/83
7/25/2019 Utility Law eco
61/83
7/25/2019 Utility Law eco
62/83
7/25/2019 Utility Law eco
63/83
7/25/2019 Utility Law eco
64/83
7/25/2019 Utility Law eco
65/83
7/25/2019 Utility Law eco
66/83
7/25/2019 Utility Law eco
67/83
7/25/2019 Utility Law eco
68/83
7/25/2019 Utility Law eco
69/83
7/25/2019 Utility Law eco
70/83
7/25/2019 Utility Law eco
71/83
7/25/2019 Utility Law eco
72/83
7/25/2019 Utility Law eco
73/83
7/25/2019 Utility Law eco
74/83
7/25/2019 Utility Law eco
75/83
7/25/2019 Utility Law eco
76/83
7/25/2019 Utility Law eco
77/83
7/25/2019 Utility Law eco
78/83
7/25/2019 Utility Law eco
79/83
7/25/2019 Utility Law eco
80/83
7/25/2019 Utility Law eco
81/83
7/25/2019 Utility Law eco
82/83
7/25/2019 Utility Law eco
83/83
