Question 11
Theory of Consumer BehaviourComparison of interpersonal utility is impossible because
- A.utility is measured in utiles
- B.marginal utility is not observable
- C.utility is subjectively
- D.individual incomes differ.
Show the answer and explanation
Answer: C (utility is subjectively)
Explanation
Satisfaction is a personal feeling: the same good gives different people different satisfaction, so one person's utility cannot be compared with another's.