The fundamental problem in utility analysis is that it makes the incorrect assumption that utility can only be stated in cardinal numbers. It implies that utils like 1, 2, and 3 can never accurately represent usefulness. When two things are consumed concurrently, satisfaction can be compared at best.
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- For instance, hotel customers expect clean bed, fresh towel and a degree of quietness.
- Shift in demand curve occurs when the price of a commodity remains unchanged however the quantity ...
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