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Which are the Weaknesses of the Cardinal Utility Theory?

Which are the Weaknesses of the Cardinal Utility Theory?

Answers

Wilfred
There are three major weaknesses of the cardinal utility theory these are;-
a) The assumption of cardinality is doubtful, in that utility derived from the various commodities cannot be measured objectively.

b) The assumption of constant utility of money is also unrealistic, as income increases the marginal utility of money changes. Therefore making money to be a poor measuring rod of utility.

c) And lastly the axiom of diminishing marginal utility is just a psychological law which is must be taken for granted.
Wilfykil answered the question on March 20, 2019 at 07:39

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