Question

What is the difference between ordinal utility and cardinal​utility?

Ordinal utility refers to
A. satisfaction when consumers are ​, while cardinal utility is satisfaction when consumers are .
B. a ranking of market baskets based on ​, while cardinal utility is a ranking of market baskets based on .
C. a ranking where the intensity of preferences is​ quantified, while cardinal utility is a number that by itself has no meaning.
D. an interpersonal comparison of​ satisfaction, while cardinal utility is a ranking of market baskets using arbitrary numerical values.
E. 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.

Answer 1

E. 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.

Step-by-step explanation:

Ordinal utility can be defined as an economic concept in which the consumer chooses a product or service from the market based on preferences in relation to another at a comparative level, but not exactly quantified.

In cardinal utility, on the other hand, the consumer is able to quantify the benefits perceived in a product or service with specific values, and this measure is beneficial to specify, for example, a choice based on price and utility for the consumer, which helps in the purchase decision process .