Question

Short note about different utilities

Answer 1

$\huge\bold\star\green{mr phenomenol}\star$


Approaches that elucidate consumer behaviour

Cardinal Utility Analysis – Cardinal utility is defined as – ‘the perspective is put forward by the economists, who presume that utility is quantifiable and the consumer can convey his or her contentment in fundamental or measurable numbers, such as 2,3,4 and so on.

Measures of Utility :

Total Utility – Total utility of a determined quantity of goods or commodity (TU) is the total contentment procured from utilizing the given amount of some goods ‘p’.

Marginal Utility – MU is the difference in total utility due to the utilization of one extra unit of goods or commodity.

Ordinal Utility Analysis – The customer does not quantify utility in numerals. All the theory of customer decision-making under constraints of certitude can be and mostly is, conveyed in the terms of ordinal utility.