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Utility is ordinal. All you are concerned is with, ranking of preferences. For example, between two bundles A and B, if U(A) = 14 and U(B) = 12, then A is preferred over B. This conclusion remains same if you say, U(A) = 10 and U(B) = 8  or U(A) = 5 and U(B) = 4.  Continue reading →