CA Foundation

________shows various combinations of two products that give same amount of satisfaction:
  • a)
    ISO cost curve
  • b)
    Indifference curve
  • c)
    Marginal utility curve
  • d)
    ISO quant
Correct answer is option 'B'. Can you explain this answer?

VIKAS KUMAR answered  •  10 hours ago
An indifference curve shows a combination of two goods that give a consumer equal satisfaction and utility thereby making the consumer indifferent. Along the curve, the consumer has no preference for either combination of goods because both goods provide the same level of utility.

Marshallian utility analysis is known as ________.
  • a)
    Cardinal
  • b)
    Ordinal
  • c)
    Classical
  • d)
    Historical
Correct answer is option 'A'. Can you explain this answer?

GOBINDA SARA answered  •  10 hours ago
Marshall's cardinal utility analysis is based upon the hypothesis of independent utilities. This means that the utility which the consumer derives from any commodity is a function of the quantity of that commodity and of that commodity alone.

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