If utility is measured in a way that not only the utility numbers assigned to bundles are meaningful, but also their differences, then we say that we are using

Question

Quizplus · Accepted Answer

Cardinal utility refers to a type of utility measurement where the actual numerical values of utility are meaningful. This means that not only can we rank bundles in order of preference (as in ordinal utility), but we can also measure the intensity of preferences between the bundles by the amount of utility assigned to them. Therefore, the differences in utility numbers between bundles have significant meaning in cardinal utility.

If Utility Is Measured in a Way That Not Only