Suppose you have a monthly entertainment budget that you use to rent movies and purchase cds. you currently use your income to rent 5 movies per month at a cost of $5.00 per movie and to purchase 5 cds per month at a cost of $10.00 per cd. your marginal from the fifth movie is 4040 and your marginal utility from the fifth cd is 7272. are you maximizing utility? you are
a. not maximizing utility because the price of movies is not equal to the price of cds.
b. not maximizing utility because the marginal utility of movies is not equal to the marginal utility of cds.
c. maximizing utility because you are consuming an equal number of movies and cds.
d. not maximizing utility because the marginal utility per dollar spent on movies is not equal to the marginal utility per dollar spent on cds.
e. maximizing utility because you are spending all of your entertainment budget.
Answers: 2
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Suppose you have a monthly entertainment budget that you use to rent movies and purchase cds. you cu...
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