Thursday, December 27, 2012

Introduction of Indifference Curve Approach

Introduction of Indifference Curve Approach
Reviewed by Hammad Naziron Apr 01 2013
Rating: 4
Indifference Curve:
Introduction of Indifference Curve:
The indifference curves approach was first introduced by Pareto and Later on it was developed by hicks and Allen. These economists are of the view that utility relates to the state of mind, so it is immeasurable cardinally. They based their theory on scale of preferences and the ordinal measurement of utility. According to these economists, a consumer simply ranks or orders his preferences.

Definition of Indifference Curve:

“An indifference curve is a locus of points or particular budgets or combinations of goods, each of which yields the same level of total utility, or to which the consumer is indifferent”.


Infolinks In Text Ads

Powered by Blogger.