Question

"Utility is a subjective concept therefore it could only be ranked" defines the position of _______.

• A. cardinal utility theorists
• B. ordinal utility theorists
• C. behavioral theorists
• D. all id the above

Answer 1

Answer: (B)

ordinal utility theorists

According to the concept of ordinal utility approach, it is impossible to measure utility in absolute terms and thus it cannot be compared. The reason for it being that it is a psychological phenomena. However, according to the ordinal utility theorists, a consumer can rank various combinations of goods and services according to his preference.