REGARDS UPON EVOLUTION OF UTILITY THEORY- THE FUNDAMENTAL ELEMENT IN PRICE ESTABLISHMENT

The purpose of an economic activity is consumer satisfaction. Therefore, production activities, decisions and actions of entrepreneures have as a reference consumer needs, preferences and behavior which must be taken in consideration by manufacturer's goods. The analysis must take into account consumer preferences and budgetary constraints wich he faced. Analysis of consumer behavior is achieved through two distinct approaches: one of cardinal and the other of ordinal utility. The purpose of this paper is to explore these approaches.