Distinguish between cardinal utility approach and ordinal utility approach to consumer behavior. How can a consumer attain equilibrium under ordinal utility approach? Explain with the help of diagram.
Answers
Answered by
12
Cardinal utility is the utility wherein the fulfillment got by the buyers from the utilization of good or administration can be communicated numerically.
Ordinal utility expresses that the fulfillment which a buyer gets from the utilization of good or administration can't be communicated numerical units.
Cardinal utility measures the utility dispassionately, though there is a subjective estimation of ordinal utility.
Cardinal utility is less reasonable, as a quantitative estimation of utility isn't conceivable. On the opposite end, the ordinal utility is more sensible as it depends on subjective estimation.
Ordinal utility expresses that the fulfillment which a buyer gets from the utilization of good or administration can't be communicated numerical units.
Cardinal utility measures the utility dispassionately, though there is a subjective estimation of ordinal utility.
Cardinal utility is less reasonable, as a quantitative estimation of utility isn't conceivable. On the opposite end, the ordinal utility is more sensible as it depends on subjective estimation.
Similar questions