Multiple choice

Which of the following statements is false?

  1. Consumer surplus can be measured precisely.

  2. The consumer surplus derived from commodity is affected by the availability of substitutes.

  3. The concept can be accepted, only if it is assumed that utility can be measured in terms of money or otherwise.

  4. In case of necessaries, the marginal utilities of the earlier units are infinitely large. In such cases, consumer surplus is always infinite.
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A Correct answer
Explanation

Consumer surplus cannot be measured precisely because it is difficult to measure marginal utilities of different units of a commodity, consumed by a person.

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