3 Major Criticisms against Marshall’s Utility Analysis
The following points highlight the three major criticisms against Marshall’s utility analysis. The criticisms are: 1. Unrealistic Assumptions 2. MU of Money can never be Constant 3. No Formal Distinction between Income and Substitution Effect. Marshall’s Utility Analysis: Criticism # 1. Unrealistic Assumptions: Marshall's utility analysis is based on some unrealistic assumptions. For instance, Marshall assumed that utility derived from [...]