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consumers seek to maxmum
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What color is cardinal?
The color cardinal is like red. It is one of the colors of Standford University, their colors being cardinal (red) and white. Correct me if I am wrong.
What is a sales assumption?
Sales assumption is an approximate figure of sales expected to occur in a particular time period.
What is the definition of reinvestment assumption?
The definition of reinvestment assumption is an assumption made concerning the rate of return that can be earned on the cash flows generated by capital budgeting projects. The cash flow can be interest, earnings, dividends, or rent.
How do you use assumption in a sentence?
When he found the "Dear John" letter and the closet empty, he made the assumption his girl friend had left him.
A sentence for assumption?
ghikkl;l;
What are the example of Cardinal utility and ordinal utility?
Cardinal
What are the examples of cardinal utility and ordinal utility?
Cardinal
What extent is ordinal utility approach an advantage to cardinal utility approach?
cardinal utility
What are the Limitations of cardinal utility?
give the limitations of cardinal utility theory
Cardinal utility approach?
The cardinal utility approach also known as classical approach is a measurable utility that expressed an exact unit and measurable monetary terms. In welfare economics if a form of utility program routine is cardinal, interpersonal comparisons of utility differences are allowed.
Differences between cardinal and ordinal utility approach?
A difference is that with ordinal utility approaches, you cannot numerically measure the level of consumer satisfaction. With cardinal utility approaches, you can to an extent.
What are the assumptions of cardinal utility approach?
Primarily cardinal utility approach has 5 assumptions. 1 rationality: the consumer is rational about his spending. 2 cardinal utility: the utility/satisfaction can be measured in cardinal NOs like 10, 8, 15, 20etc 3 constancy of money: The money of consumer must remain constant. 4 diminishing marginal utility: Marginal/additional utility of consumer decreases along with successive use of any commodity. 5 total utility: Total utility depends on quantity of commodity. 3
To what extent is the ordinal utility approach an improvement of cardinal approach?
to what extent is ordinal utility approach and improvement cardinal in explaining consumer behaviour in economics
What is the similarity between cardinal utility theory and ordinal utility theory?
When discussing cardinal vs. ordinal, it is helpful to look at what the words mean. The distinguishing factor here is between cardinal and ordinal numbers. Cardinal numbers are 1, 2, 3; ordinal numbers, 1st, 2nd, 3rd. Some crucial differences follow from that. Whereas mathematical operations can be performed on cardinal numbers, they cannot be performed on ordinal numbers. Now, when talking about cardinal utility, it is an attempt to ''measure the utility of various alternatives. When talking about ordinal utility, it is the ''ranking of alternatives.'''' Cardinal utility is, however, an erroneous concept. It is impossible to "measure" utility. People can only say "I prefer A to B", but cannot meaningfully say "I prefer A 2.5 times more than B" or something to that effect. Furthermore, comparisons of utility between different individuals are impossible and meaningless, as well as between the same individual at different points in time (as individuals can and do change their preferences -- that is, ordinal value-scale rankings). Because value is subjective, we cannot measure it and cannot compare between two different people, or even between the same person at different times. To clarify, ordinal utility culminates in value-scales: 1st: A2nd: B3rd: C whereas cardinal utility is the erroneous attempt at measurement: 10utils -- A7utils -- B3utils -- COmar Tawfik.
Define cardinal approach?
The cardinal approach in a careful approach that states that utility is measurable. The ordinal approach disagrees with this theory.
Differentiate between cardinal and ordinal theories of consumer behavior?
. Cardinal Approach refers that you can calculate or Measure the utility (degree of satisfaction) Numerically, while According to ordinal approach you can not measure the utility numerically. 2. Cardinal Approach follow the Law of Diminishing Marginal Utility while Ordinal Approach follow the Indifference Curve. 3.Cardinal Approach Emphasis on units while ordinal approach is based on rank.
How does cardinal utility approach explain consumer behaviour?
When we can not measure in terms of money but we can measure of lavel of satisfaction then it is called cardinal approach
