Question

2.Cardinal utility approach uses ​

Answer 1

Answer:

In economics, a cardinal utility function or scale is a utility index that preserves preference orderings uniquely up to positive affine transformations.

Answer 2

Answer:

In economics, a cardinal utility function or scale is a utility index that preserves preference orderings uniquely up to positive affine transformations.

In economics, utility represents the satisfaction or pleasure that consumers receive for consuming a good or service. Utility function measures consumers' preferences for a set of goods and services.

Cardinal Utility is the idea that economic welfare can be directly observable and be given a value. For example, people may be able to express the utility that consumption gives for certain goods. For example, if a Nissan car gives 5,000 units of utility, a BMW car would give 8,000 units.