What is the difference between ordinal utility and cardinal utility? Ordinal utility refers to A. satisfaction when consumers a

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3 years ago

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What is the difference between ordinal utility and cardinal utility? Ordinal utility refers to A. satisfaction when consumers a

re not rational, while cardinal utility is satisfaction when consumers are rational. B. an interpersonal comparison of satisfaction, while cardinal utility is a ranking of market baskets using arbitrary numerical values. C. a ranking of market baskets in order of most to least preferred, while cardinal utility indicates how much one market basket is preferred to another. D. a ranking of market baskets based on income, while cardinal utility is a ranking of market baskets based on consumption. E. a ranking where the intensity of preferences is quantified, while cardinal utility is a number that by itself has no meaning.

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1 answer:

adoni [48] · Answer 1 · 2021-12-26T11:18:07+03:00

Answer:

I strongly believe that the correct answer is B. Im going to give an example. if we take into account a company like Honda produces 4000 units, for example Mercedes Benz produces 7000 units, this is very important for welfare economics which tries to put values on consumption.

Explanation:

What is the difference between ordinal utility and cardinal​ utility? Ordinal utility refers to A. satisfaction when consumers a

What is the difference between ordinal utility and cardinal utility? Ordinal utility refers to A. satisfaction when consumers a