Question : In the case of the cardinal utility approach, utility is measured in:
Option 1: Rupees
Option 2: Ranks
Option 3: Utils
Option 4: None
Answer (1)
26th Jan, 2024
Correct Answer: Utils
Solution :
The correct answer is (c) Utils
That is correct. In the case of the cardinal utility approach, utility is measured in "utils." The concept of utils represents a hypothetical unit of measurement used to quantify the level of satisfaction or utility derived from consuming goods or services. It allows for the comparison of utility across different goods and enables the analysis of consumer preferences and decision-making.
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