Comparison of interpersonal utility is impossible because
- utility is measured in utils
- marginal utility is not observable
-
utility is subjectively determined
- individual income differ
The correct answer is: C
Explanation
The comparison of interpersonal utility is impossible because the utility or the satisfaction derived from consuming a product is subject to what that individual has stated. It is impossible to say that Mr. A and Mr. derived the same level of satisfaction after consuming a bottle of water. This is because their level of satisfaction differs individually and only implicit values are used in comparison