The cardinal utility is the accurate measurement of dimensions, thereby utilities that provide different goods to a consumer can be set safely and compare the few differ from others.
According to the theory of this utility, you can quantify and observe the satisfaction that a customer has with a certain product or service, in addition to the utility that can be obtained from them.
Cardinal Utility Goals
How Cardinal Utility is measured
This type of utility can increase, compare, and order the data in the same way as the numbers. In order to understand how the degree of utility of the good or service is measured, this average provides certain value to the consumption of themselves, depending on the needs, amount of consumption, and priorities that the customer has.
The measurement of cardinal utility can be highly beneficial in many cases, since it can know and accurately compare the value that good has for a person, allows us to have knowledge of the marginal utility that leads to twice the consumption of the good and order the products depending on the level of utility it has for the consumer.
Advantages and disadvantages of Cardinal Utility
This type of utility includes a series of advantages and disadvantages, such as the following:
Advantages of cardinal utility
Disadvantages of cardinal utility
In general, the cardinal utility is an economic term that serves to measure customers’ expectations on how useful goods and services can be, beyond what is expected of the monetary value that they may have.