Cardinal utility approach

Cardinal utility approach

Bachelor of Business Studies (BBS) — First Year

Subject: Microeconomics for Business (MGT 207)

Unit 4: Analysis of Consumer's Behavior

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of cardinal utility approach.
• Explain the economic reasoning and use appropriate diagrams or relationships in business analysis.

Curriculum Scope

• Assumptions
• Consumer equilibrium
• Criticisms
• Demand-curve derivation

Detailed Microsyllabus

1. Cardinal utility foundations

   1. Utility measurement assumptions.
   2. Total utility, marginal utility and diminishing marginal utility.
   3. Consumer expenditure and the budget constraint.

2. Equilibrium and demand

   1. Utility-based equilibrium conditions.
   2. Derive a demand relationship under stated assumptions.
   3. Criticisms of cardinal measurement and the approach's explanatory limits.

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Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 17-19.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here. The programme subject list identifies this course as MGT 207; the detailed subject heading in the source prints MGT 203.