In which approach is Utility ranked in order of preferences but not measured and quantified ?

Cardinal

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Ordinal

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Independent Variables Approach

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Both Cardinal and Ordinal

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Solution

The correct option is B Ordinal
William Stanley Jevons, Léon Walras, and Alfred Marshall all developed concepts of utility, usually linked to market prices. However, proving exact measurement of utility proved elusive. In ordinal utility, the consumer only ranks choices in terms of preference but we do not give exact numerical figures for utility.

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