limitations of indifference curve analysis
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Limitations of indifference curve:
1. Two commodity: fixed amount of money spend on both the good.
2. Non Satiety: Consumer has not reached the point of equilibrium.
3. Utility : it is Ordinal utility consumer rank the commodity.
4. Diminishing MRS : due to this IC curve is convex to origin.
5. Rational Consumer: Consumer aim to maximize his total satisfaction.
1. Two commodity: fixed amount of money spend on both the good.
2. Non Satiety: Consumer has not reached the point of equilibrium.
3. Utility : it is Ordinal utility consumer rank the commodity.
4. Diminishing MRS : due to this IC curve is convex to origin.
5. Rational Consumer: Consumer aim to maximize his total satisfaction.
AnuradhaMedhi:
limitations or assumptions?
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