Which statement is NOT a critique of utility theory?
A) People do not make mental calculations of satisfaction.
B) Utility is not measurable.
C) Not all decisions are made rationally.
D) Utility theory is limited to an analysis of individual demand behavior.

Question

Quizplus · Accepted Answer

Utility theory is indeed focused on analyzing individual demand behavior, which is not a critique but rather a description of its scope. The other options (A, B, C) represent common critiques of utility theory, such as the challenges in measuring utility, the observation that not all decisions are made rationally, and the impracticality of individuals making precise mental calculations of satisfaction.

Which Statement Is NOT a Critique of Utility Theory