Question

Explain the Concepts of Utility, Total Utility, Marginal Utility; Average Utility cardinal and Ordinal approach and what is the concept market.

Answer 1

Answer:

Summary: Cardinal utility gives a value of utility to different options. Ordinal utility just ranks in terms of preference. ... For example, allocative efficiency is said to occur when Marginal cost = Marginal Utility. One way to try and put values on goods utility is to see what price they are willing to pay for a good.