A consumer has spent all of his funds on hamburgers and movies. The price of a hamburger is $1 and the price of a movie is $5. The marginal utility of the last hamburger is 5 and the marginal utility of the last movie is 40. This consumer has
A) not maximized utility. To maximize utility, he should cut back on movies and buy more hamburgers.
B) not maximized utility. To maximize utility, he should cut back on hamburgers and buy more movies.
C) not maximized utility. To maximize utility, he should cut back consumption of each.
D) maximized utility.
Correct Answer:
Verified
Q188: The price of good X is $5
Q189: Q190: In a restaurant we can observe people Q191: The consumer optimum (for two goods, A Q192: Assume that the marginal utility from good Q194: Consumers do NOT buy as many units![]()
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