Friday, July 27, 2012

Criticism of Indifference curve & consumer equilibrium

Criticisms of   Indifference curve
 1. Tells nothing new
 2. Not easy to indicate the preference
 3. Complexity
 4. Unrealistic assumption of economic rationality
 5. Limited empirical ( prayog shedha) nature                                                                                                6.   Relation to Transivity ( paribartaneya sambandha)
 
 

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