What is the difference between ordinal utility and cardinal

Assignment Help Microeconomics
Reference no: EM13321462

1. What is the difference between ordinal utility and cardinal utility? Explain why the assumption of cardinal utility is not needed in order to rank consumer choices.

2.Upon merging with the West German economy, East German consumers indicated a preference for Mercedes- Benz automobiles over Volkswagens. However, when they converted their savings into deutsche marks, they flocked to Volkswagen dealerships. How can you explain this apparent paradox?

Questions Cloud

 Estimate the steady state concentration in the airshed : Consider a box model for an air shed over a city that is 1 X 105 m on a side, with a height of 1200 m induced by a temperature inversion. Winds with no SO2 blow at 4 m/s agains one side of the box. Janelle does not care at all about styling and wants : If Jane is currently willing to trade 4 movie tickets for 1 basketball ticket, then she must like basketball better than movies. True or false? Explain. Is inventor claim valid to have an invented adiabatic flow : An inventor claims to have invented an adiabatic steady-flow device with a single inlet-outlet that produces 100 kW when expanding 1 kg/s of air from 900 kPa and 300 degrees C to 100 kPa. Discuss why and how preferences might change over time : Consumer preferences for various commodities did not change during the analysis. In some situations, however, preferences do change as consumption occurs. What is the difference between ordinal utility and cardinal : What is the difference between ordinal utility and cardinal utility? Explain why the assumption of cardinal utility is not needed in order to rank consumer choices. Determine the horizontal and vertical components at pin c : the jib crane is supported by a pin at c and a rod at ab if the load has a mass of 2Mg with its com located at g determine the horizontal and vertical components of the reaction at the pin c Calculate the position of the image formed by the lens : A small object is placed to the left of a convex lens and on the optical axis. What is the position of the image formed by the lens What happens to the marginal rate of substitution as you : What happens to the marginal rate of substitution as you move along a convex indifference curve? A linear indifference curve? Derive linear demand and supply curves for the cigarette : In 1998, Americans smoked 470 billion cigarettes. The average retail price was \$2 per pack. Statistical studies have shown that the price elasticity of demand is -0.4, and the price elasticity of supply is 05. Using this information

Write a Review

The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"