Please see the attached file for full problem description.
1. Cardinal & ordinal measurement in shortcoming of Ic curve
2. optimum level of consumption in cardinal Approach.
<br>Differentiate between Cardinal and Ordinal measurement of utility. Explain also the shortcomings of Indifference curve analysis briefly?
<br>cardinal measurement of utility: A measurement based on a scale or quantitative numbers, such as 1, 5, or 357.2, that enables a comparison in magnitude. Most economic measures are based on cardinal numbers, including gross domestic product, unemployment rate, the price of chocolate, and the quantity of wheat produced. The benefit of cardinal measurement is the ability to directly compare one measure with another. There is little or no evidence to suggest that such measurement ...
Cardinal & Ordinal Measurement & Cardinal Approach is highlighted.