What do you mean by ordinal utility, Managerial Economics

Assignment Help:

Q. What do you mean by Ordinal utility?

A method of analysing utility or satisfaction derived from consumption of services andgoods, based on a relative ranking of services and goods consumed. With ordinal utility goods are just ranked only in terms of more or less preferred, there isn't any attempt to determine how much more one good is preferred to another. Ordinal utility is underlying assumption employed in analysis of indifference curves and must be compared with cardinal utility that (hypothetically) measures utility using a quantitative scale.


Related Discussions:- What do you mean by ordinal utility

Describe the meaning of managerial economics, MEANING OF MANAGERIAL ECONOMI...

MEANING OF MANAGERIAL ECONOMICS Managerial economics which is used synonymously with business economics is a branch of economics which deals with application of microeconomic ana

Differentials and disequilibrium, DIFFERENTIALS AND DISEQUILIBRIUM In ...

DIFFERENTIALS AND DISEQUILIBRIUM In a free enterprise system, workers aim at maximizing their wages.  Hence, it would be expected that workers would move form low-paying indus

Difference between a static budget and a flexible budget, 1.  What is the d...

1.  What is the difference between a static (master) budget and a flexible budget? Ans:  static budget is where a budget doesn't change a volume changes.  An example could be th

Cost Analysis, Michael was discussing the importance of production analysis...

Michael was discussing the importance of production analysis and cost analysis to managerial economics with a final year Open Campus student. The final year student, Catherine, sta

Determine Optimal Price, Determine Optimal Price, Quantity and Economic Pro...

Determine Optimal Price, Quantity and Economic Profit A firm has a demand function P = 200 – 5Q and cost function: AC=MC=10 and a potential entrant has a cost function: AC=MC=20

Principles of an optimal tax system, PRINCIPLES OF AN OPTIMAL TAX  SYSTEM ...

PRINCIPLES OF AN OPTIMAL TAX  SYSTEM When taxes are imposed certain conditions must be fulfilled.  These conditions are known as Principles or canons of taxation. According to

Elasticity of demand, When given two demand functions to calculate elastici...

When given two demand functions to calculate elasticity of demand do you use point elasticity or arc elasticity of demand formula

Nominal rigidities versus real rigidities, NOMINAL RIGIDITIES VERSUS REAL R...

NOMINAL RIGIDITIES VERSUS REAL RIGIDITIES    Nominal rigidities are said to exist when nominal prices and wages  do  not change in  the  face  of  conditions that call for thei

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd