Cardinal
Utility
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Ordinal
Utility
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1.Cardinal utility states that the satisfaction that the consumer
derives by consuming goods and services can be measured with numbers.
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1. Ordinal utility states
that the satisfaction that the consumer derives from the consumption of goods
and services cannot be measured in numbers
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2. Cardinal utility is a quantitative measure
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2. Ordinal utility is a qualitative measure.
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3. In cardinal utility, it is assumed that consumers derive
satisfaction through consumption of one good at a time.
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3. in ordinal utility it is
assumed that a consumer may derive satisfaction from the consumption of a
combination of goods and services
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4. Using Cardinal utility a
customer can assign a number to a product that when consumed was able to
satisfy their needs.
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4. Using ordinal utility a customer can rank the products according
to the level of satisfaction that was derived.
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5. Cardinal utility is a
quantitative method that is used to measure consumption satisfaction.
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5. Ordinal utility is a qualitative method that is used to measure
consumption satisfaction.
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