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On which assumptions is cardinal analysis based?

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in Consumers Equilibrium by (63.7k points)

On which assumptions is cardinal analysis based?

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The cardinal analysis is based on assumptions given below:

  1. Rationality
  2. Limited money income
  3. Maximisation of satisfaction
  4. Utility is cardinally measurable
  5. Diminishing marginal utility
  6. Constant utility of money
  7. Utility is additive.
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