Cardinal utility and ordinal utility

                                       CARDINAL UTILITY

                                     Helps the customers to measure the preferences of goods.

1. The customers satisfaction can be measured using cardinal utility.
2. the 'util' is used as measuring unit of cardinal utility.
3. 1 util = 1 unit of money
4. For example Ferrari car gives 5000 units of utility and BMW car is giving 3000 units of utility(marginal cost=marginal utility)         

                                            DEMAND CURVE SHOWING CARDINAL UTILITY

ref : economicshelp.org

ORDINAL UTILITY

                                      Helps the customers to select the product through ranking

1. when we are using ranking we are using ordinary utility
2. In ordinal utility, the consumer only ranks choices in terms of preference but we do not give exact numerical figures for utility.
3. for example we prefer BMW car to Ferrari car,but we don't say how much.