2.5.5 Indifference curve

2.5.5 Indifference curve

There are two approaches to the concept of utility. The classical economists believed utility could be measured and they defined it as cardinal utility. On the other hand, the ordinal utility approach explained that utility cannot be measured and could only be ranked based on individual tastes and preferences. Hence, they defined utility as ordinal utility. It explains utility with Indifference Curve Technique.

Last modified: Wednesday, 21 December 2011, 10:05 AM