how can the consumer preference be represented according to ordinal approach to consumer behavour? explain ?
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Distinguish between the cardinal utility approach and ordinal utility approach are given below:
- Cardinal utility refers to the satisfaction that can be measured number whereas Ordinal utility refers to the satisfaction that can not measure by number.
- Cardinal utility concept was used by Marshal whereas Ordinal utility concept was used by JR Hicks.
- Cardinal utility is less realistic whereas Ordinal utility is more realistic .
- Cardinal utility is quantative measure whereas Ordinal utility is qualitative measure.
- Cardinal utility follows the marginal utility analysis whereas Ordinal utility follows indifference curve analysis.
- Cardinal utility measured in terms of utis whereas Ordinal utility measured in terms of ranking.
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