Introspective Cardinalist Theory | Microeconomics
In this article we will discuss about the introspective cardinalist theory of consumer behaviour as developed by Sir Alfred Marshall. 1. The Law of Diminishing Marginal Utility: In Marshall's theory, utility is cardinally measurable in terms of money. According to the Marshallian law of diminishing marginal utility (LDMU), as the consumer goes on consuming a certain good, the marginal utility [...]