Ordinal approach of measurement of utility is the best but economist like cardinal approach . Explain
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Cardinal utility prompts measuring of the satisfactory levels in utils. It is necessary for economic well-being as it tries to set a value. Furthermore, allocative efficiency appears when the marginal cost becomes equal to marginal utility. The supply and demand of a product decide its price.
Economic theories based on rational choice usually assume that consumers will strive to maximize their utility. The economic utility of a good or service is important to understand, because it directly influences the demand, and therefore price, of that good or service.
Cardinal utility gives a value of utility to different options. Ordinal utility just ranks in terms of preference. ... For example, people may be able to express the utility that consumption gives for certain goods. For example, if a Nissan car gives 5,000 units of utility, a BMW car would give 8,000 units.