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Give the two approaches to the study of utility

      

Give the two approaches to the study of utility

  

Answers


Dana
Cardinal approach: this approach attaches significance to the magnitude utility. In this approach, the size of the utility difference between the bundles is supposed to be of some sort of significance
Ordinal approach: it formulates the consumer behavior entirely in terms of consumer preferences and utility is seen only as a way to describe the preferences by ranking bundles according to the utility derived from each bundle

Dana05 answered the question on August 15, 2019 at 14:03


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