What is the difference bwtween cardinal and ordinal measurement of utility?
Answers
The cardinal measure of utility (Given by MARSHALL) said that utility of an individual can be measured quantitatively...this means you can put a number to the amount of satisfaction you get from a product. This was measured in UTILS For example, saying you got 50 utils of satisfaction from eating a burger. As is obvious, this didn't make too much sense because you cannot put a number to a feeling.
The ordinal measure of utility (Given by HICKS AND ALLEN) said that utility cannot be measured but it can be ordered. This is to say that individuals can order their purchasing preferences. For example, saying you would prefer buying 2 pizzas to buying 2 burgers
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Answer:
Cardinal utility is a function that determines the satisfaction of a commodity used by an individual and can be supported with a numeric value. On the other hand, ordinal utility defines that satisfaction of user goods can be ranked in order of preference but cannot be evaluated numerically.