LIMITATION OF CONSUMER SURPLUS

Limitations:
It is often argued that this concept is hypothetical and illusory. The surplus satisfaction cannot be measured precisely.

(1) Consumer’s surplus cannot be measured precisely - because it is diflcult to measure the marginal utilities of diuerent units of a commodity consumed by a person.

(2) In the case of necessaries, the marginal utilities of the earlier units are infinitely large. In such case the consumer’s surplus is always infinite.

(3) The consumer’s surplus derived from a commodity is auected by the availability of substitutes.

(4) There is no simple rule for deriving the utility scale of articles which are used for their prestige value (e.g., diamonds).

(5) Consumer’s surplus cannot be measured in terms of money because the marginal utility of money changes as purchases are made and the consumer’s stock of money diminishes. (Marshall assumed that the marginal utility of money remains constant. But this assumption is unrealistic).

(6) The concept can be accepted only if it is assumed that utility can be measured in terms of money or otherwise. Many modern economists believe that this cannot be done.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! This book is approved by Ministry of HRD Govt.of India as Students friendly book. Author Name- CA Harshita Raichandani and CA Dhananjay Ojha Book […]