Cardinalutility, is based on marginal utility analysis. As against this, the concept of ordinal utility is based on indifference curve analysis. The cardinal utility is measured in terms of utils, i.e. units of utility. On the contrary, the ordinal utility is measured in terms of ranking of preferences of a commodity when compared to each other.
Economics Economics questions and answers. The above table shows Homer's utility from boxes of doughnuts. As Homer's consumption of doughnuts increases, his total utility is not related to his marginal utility. marginal utility is positive and increasing. marginal utility is negative but increasing. marginal utility is negative and decreasing
Totalutility is the utility obtained by consuming all the units of a commodity. Marginal utility is the utility obtained by consuming an additional uni View the full answer
Asa consumer compares the marginal utility per dollar spent on a good with the marginal utility per dollar spent on an alternative purchase (the opportunity cost), the marginal benefit is the additional utility that will be gained and the marginal cost is the amount of utility given up. If the amount gained is greater than what is given up
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what is total utility and marginal utility