Question

cardinal or ordinal utility concept, which is more useful in demand analysis from managers point of view

Answer 1

Answer:

hi mate I am sorry I didn't understand the question

Explanation:

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Answer 2

From a managerial point of view,ordinal utility approach provides a better estimation of overall consumer satisfaction or utility.

Explanation:

Ordinal utility in Microeconomics,basically construes measurement or estimation of consumer utility of satisfaction level obtained from the consumption of various goods and services in a non-numerical way or by assigning ordinal ranks to the products or services purchased by the consumers based on their personal preferences and choices.Now,as argued by several economists,consumer utility or satisfaction is a subjective matter which ideally depends on individual preferences or liking or disliking.Therefore,measuring customer satisfaction through numerical or mathematical units is impractical and unreasonable.For companies or business organisation,it is relatively much more convenient to observe the regular consumption pattern of the consumers and understand consumer preferences accordingly.In this process,it is possible to rank the items that most often purchased by any consumer,on the top,and rest below those according to the frequency of purchase or consumption.Therefore,information about ordinal utility of consumers can be helpful for businesses to better understand consumer behavior and psychology.