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Question 39 of 41

Q.The chief exponent of the Cardinal utility approach was

(a) J.R.Hicks
(b) R.G.D.Allen
(c) Marshall
(d) Stigler
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Alfred Marshall is the chief exponent of the cardinal utility approach — option (c).

In consumption analysis two approaches explain consumer behaviour:

  • Cardinal utility approach — assumes utility (satisfaction) can be measured in absolute numerical units called utils. Its central tool is the Law of Diminishing Marginal Utility. This approach was developed and made famous by Alfred Marshall.
  • Ordinal utility approach — argues utility can only be ranked, not measured, and uses indifference curves. Its main proponents were J. R. Hicks and R. G. D. Allen. …

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