What Is Ordinal Utility Approach?


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Aisha answered
Ordinal utility approach states that as the utility of a particular good or a service cannot be measured, a consumer is capable of ranking the different alternatives. The goods are often considered in 'bundles' for example, does individual A prefer 2 apples and 4 oranges or 2 oranges and 4 apples?
So when large number of baskets of goods are compared, the preferences of the individual can be seen in this approach.

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