Multiple Choice
The price of a hamburger is $1 and the price of a movie is $4 and the consumer has $10. A consumer has purchased 2 hamburgers and 2 movies, receiving 25 units of utility for the second hamburger and 100 units of utility for the second movie. The set of goods
A) is an optimum since the entire income is spent and the marginal utility per dollar spent is the same for the last unit of each good.
B) is an optimum since the entire income is spent and total utility is minimized.
C) is not an optimum because the marginal utility per dollar spent is greater for hamburgers than for movies.
D) is not an optimum because the consumer has not spent all of his money.
Correct Answer:

Verified
Correct Answer:
Verified
Q20: Peter consumes bags of potato chips and
Q39: Suppose that the quantity of hamburgers is
Q41: Marginal utility is<br>A) the utility received from
Q229: If the total utility derived from consuming
Q233: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5013/.jpg" alt=" -Refer to the
Q295: In economic utility analysis, consumer tastes and
Q327: The law of demand is derived under
Q377: When marginal utility is positive, total utility
Q437: If price of a product falls<br>A) the
Q442: If you regularly spend $100 a month