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Utility Anaylsis - Coggle Diagram
Utility Anaylsis
Features
Relative concept
Subjective concept
Ethically neutral concept
Differs from usefulness
Differs from pleasure
Differs from satisfaction
Measurement is hypothetical
Multi-purpose
Depends on intensity of want
Basis of demand
Law of DMU assumptions
Rationality
Cardinal measurement
Homogenity
Continuity
Reasonability
Constancy
Divisibility
Single want
Types of Utility
Form Utility
Place Utility
Service Utility
Knowledge Utility
Possession Utility
Time Utility
Law of DMU exceptions
Hobbies
Miser
Addictions
Power
Money
Criticisms of Law of DMU
Unrealistic assumptions
Cardinal measurement
Indivisible goods
Constant marginal utility of money
Single want
Significance of Law of DMU
Usefulness to consumers
Useful to government
Basis of paradox of values
Basis of Law of Demand
Concepts of Utility
Total Utility
Marginal Utility