Cardinal and Ordinal utility, the law of Diminishing marginal utility –limitations – importance; law...

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Cardinal and Ordinal utility, the law of Diminishing marginal utility –limitations – importance; law of equimarginal utility – consumer’s equilibrium,

Robert · Accepted Answer

Cardinal and Ordinal utility, the law of Diminishing marginal utility –limitations – importance; 
law of equimarginal utility – consumer’s equilibrium. 
Answer: 
Cordinal utility vs Ordinal utility:  
Under Cordinal approach, utility can be measured in quantity and therefore it helps in 
determining the strength of preferences.  In contrast, under ordinal approach, utility cannot be 
measured; it can only be ranked and therefore it does not capture strength of preferences.

Cardinal and Ordinal utility, the law of Diminishing marginal utility – limitations – importance; law of equimarginal utility – consumer’s equilibrium,

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