Assumption of Marginal Utility Analysis - Theory of Consumer Behaviour, CBSE Class 12 Economics Video Lecture

now we know water now we know what is
marginal utility analysis but to go into
detail let's first see what are the
assumptions in studying marginal utility
analysis the first is Cardinal
measurement of utility we've already
done this
Cardinal measurement of utility is
quantifying the level of satisfaction
quantifying the level of utility when
you consume some commodity you derive
some satisfaction from it and when you
put a number to that satisfaction level
we can say we are measuring the utility
it is called the Cardinal measurement of
utility the next is constancy of
marginal utility of money now please
understand that more money a person has
more money he wants if I give you 10
rupees you will derive some satisfaction
from it but if I give you 20 rupees you
will derive more satisfaction from it
now every time if I give you money you
will derive all the more satisfaction
from him your satisfaction level will go
on increasing your happiness level will
go on increasing but in our assumption
it is but in this topic it is assumed
that marginal utility of money is
constant that is every rupee gives the
user same level of satisfaction or same
level of utility
and the last phase hypothesis of
independent utility utility has to be
taken as an independent concept it is
not related with price or demand or
supply utility is a measure of
satisfaction level so we have to
consider utility independent of other
factors