What Is The Difference Between Features Of Cardinal And Ordinal Utility?


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Aisha Profile
Aisha answered
Cardinal Utility and Ordinal Utility are both concepts of economics. Cardinal Utility is the theory that implies that the utility gained from a product or service is measurable and the magnitude of measurement is meaningful. Whereas Ordinal Utility implies that the utility of a good or service cannot be measured by using an objective scale. Cardinal Utility is measurable and quantitative whereas Ordinal Utility is not measurable and is Qualitative.
Anonymous Profile
Anonymous answered
In cardinal approach utility is measured in monetary terms or in utils while in the ordinal approach preferences are ranked according to the level of satisfactoin derived from consuming that product.ordinal appraoch makes use of indifference curves whereby a higher indifference curve represents higher level of satisfaction.
Anonymous Profile
Anonymous answered

what are the features of cardinal and ordinal utility?

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