DIFFERENCE BETWEEN CARDINAL UTILITY AND ORDINAL UTILITY.
|Basis||Cardinal Utility||Ordinal Utility|
|(1) Meaning||It assumes that the satisfaction can be measured & expressed in cardinal i.e. countable numbers.||It assumes that satisfaction cannot be measured in numbers but things can be arranged in the order of our preference.|
|(2) Example||Ram yields 60 utils of satisfaction from pizza and 40 utils from a burger.||Ram yields more satisfaction from Pizzas in comparison to burger.|
|(3) Measurement||It says that ‘Utility’ is measured in ‘utils’||It says that ‘Utility’ is rank based on “satisfaction”|
|(4) Realistic||It is less realistic.||It is more realistic.|
|(5) Used by||This concept was used by Prof. Marshall||This concept was used by Prof. J R Hicks|
|(6) Other Name||Utility Analysis||Indifference Curve Analysis|