Question

Find out the strength and weakness of the cardinal and ordinal approach

Answer 1

Strength and Weakness of the cardinal and ordinal approach

Explanation:

Cardinal and ordinal approaches are the types of utility approaches. In cardinal approach the utility of customers can be expressed through numeric representation whereas in ordinal approach it cannot be presented in numbers.

Strength of Cardinal utility and weakness of ordinal utility approach are that

- cardinal approach allows for a consumer to make certain decisions. That there is present, a choice of goods for specific utility value. Meaning, goods are labelled that whatever utility they are providing. Something which the ordinal utility may not give because its non-numeric. Another benefit is that through this approach consumers can easily give ranking to their choices.

Strength of ordinal utility and weakness of cardinal approach is that,

- This is good that the customer doesn't need to give any ranking according to the magnitude. This is a benefit that due to being non-numeric there is no labeling going on.

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Answer 2

Cardinal utility is where the satisfaction devoted form the consumption of goods can be measured and ordinal it cannot be measured numerically.

Explanation:

• The cardinal utility is a function of scale that preserves preferences. Measurability is considered to be one of the utility function that gives strengths to the preference of intensity of a liking of a good.

• The cardinal utility is show on an interval scale and gives random outcomes or preferences and increases linear transformation. The ordinal utility is the theory of consumer decision making under the conditions of certainty.

Learn more about the strength and weakness of the cardinal and ordinal approach.

• brainly.in/question/13551829 answered by alinakincsem.