A consumer downloads 4 movies and 3 apps per week. Suppose the price is $4 per movie and $4 per app, and the marginal utility th

Question

sashaice [31]

4 years ago

12

A consumer downloads 4 movies and 3 apps per week. Suppose the price is $4 per movie and $4 per app, and the marginal utility th

is consumption level is 14 for a movie and 8 for an app. Calculate marginal utility per dollar. per movie per app

Business

1 answer:

maks197457 [2] · Answer 1 · 2021-12-24T02:48:08+03:00

maks197457 [2]4 years ago

8 0

Marginal utility will be calculated for movies by: 14/(4*4) which would mean 0.875 utils per dollar per movie. Whereas, for apps, it would be: 8/(3*4) which would mean utils per dollar per app to be 0.667. Hence, movies tend to carry higher utility.