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CARDINAL UTILITY THEORY

cardinal utility theory was given by Alfred Marshall. Cardinal means something that can be measured in numerical terms ie something that can be measured in numbers. So ,cardinal utility is an attempt to measure consumer satisfaction in numerical terms. But utility is a psychological thing,I mean amount of satisfaction depends on your way of thinking so how could someone meausure it in numbers, and if it is been measured then in what terms,what's the unit of measurement??? In answers to these question all I have to say is that this method is backed by some assumptions. 1. Utility is quantifiable and is measured in utils, now util is an imaginary unit of measurement used to calculate amount of satisfaction a person gets,it's used to measure utility under this approach. 2. Consumer is rational he always maximises his utility-rationality have many implication in many other economic theory 3. Utility is additive this means that totat utility is derived by summing the amount of utility a person gets from consuming individual units of goods. 4.marginal utility of money remains same.