State how the ordinal utility approach to consumer behavior is different from the cardinal utility approach by Marshall
Assignment Solutions, Case study Answer sheets Project Report and Thesis contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 Business Economics 1. State how the ordinal utility approach to consumer behavior is different from the cardinal utility approach by Marshall. In the context of indifference curve (IC) technique using ordinal utility approach, explain whether following two statements are true. - “IC slopes downwards because if the quantity of one product is reduced, the quantity of other product must also be decreased” and “Slope of indifference curve indicates the rate at which individuals are ready to substitute one commodity by the other”. Substantiate your view on each of the statements separately (10 Marks). 2. With the help of the concept of production function, explain the difference between Law of Variable Proportions and Law of Returns to Scale. Elaborate your answer by citing real world examples...