Question

1.Briefly distinguish between the cardinal utility approach and ordinal utility approach to consumer behavior. Explain with illustration the law of eventual diminishing marginal utility?

Answer 1

Cardinal utility means that an individual can attach specific values or numbers of utils from consuming each quantity of a good or basket of goods.
ordinal utility only ranks the utility received from consuming various amounts of a good or baskets of goods

The illustration is too long to explain here. so I am attaching 1 link here http://www.economicsdiscussion.net/cardinal-utility-analysis/consumers-behaviour-cardinal-utility-an...

Answer 2

Explanation:

Briefly distinguish between the cardinal utility approach and ordinal utility approach to consumer behavior. Explain with illustration the law of eventual diminishing marginal utility