Question

Explain the difference between Cardinal and Ordinal Utility. Give example.

Answer 1

Cardinal Utility It assumes that the satisfaction can be measured & expressed in cardinal i.e. countable numbers. whereas ordinal - It assumes that satisfaction cannot be measured in numbers but things can be arranged in the order of our preference.(2) Cardinal Measurement : It says that ‘Utility’ is measured in ‘utils’ whereas ordinal- It says that ‘Utility’ is rank based on “satisfaction”

(3) Cardinal-Realistic : It is less realistic. whereas ordinal- It is more realistic.

(4) This concept was used by Prof. Marshall whereas ordinal- concept used by Prof. JR Hicks