Exhibit 6-4 Total utility for multiplex tickets, video rentals, and popcorn
Total Utilityfrom Multiplex Tickets
Total Utilityfrom Video Rentals
Total Utilityfrom Popcorn
1 movie (30 utils)
1 video (14 utils)
1 bag (8 utils)
2 movies (54 utils)
2 videos (24 utils)
2 bags (13 utils)
3 movies (72 utils)
3 videos (30 utils)
3 bags (15 utils)
4 movies (84 utils)
4 videos (32 utils)
4 bags (16 utils)
In Exhibit 6-4, assume the Multiplex tickets cost $6 each, video rentals cost $2 each, and bags of popcorn cost $1 each. What is the marginal utility of renting a third video?
A. 6 utils.
B. 8 utils.
C. 10 utils.
D. 30 utils.
Answer: A
Economics
You might also like to view...
Refer to Figure 18-1. Area F + G represents
A) the portion of sales tax revenue borne by consumers. B) the portion of sales tax revenue borne by producers. C) the excess burden of the sales tax. D) sales tax revenue collected by the government.
Economics
Which of the following is a definition of velocity?
a. Velocity = value of final goods and services produced/money supply b. Velocity = real GDP/M c. Velocity = nominal GDP/real GDP d. Velocity = (P Q)/(M V)
Economics