Suppose Music CDs and Movie DVDs Give the Same Utility

question 85

Multiple Choice

Suppose music CDs and movie DVDs give the same utility to Jane, and she has $200 to spend on music CDs and movie DVDs. The price of a movie DVD is $15, and the price of a music CD is $10. Which of the following is the most affordable bundle for maximizing her utility?

• A)10 music CDs and 5 movie DVDs
• B)10 music CDs and 10 movie DVDs
• C)5 music CDs and 5 movie DVDs
• D)15 music CDs and 5 movie DVDs
• E)5 music CDs and 10 movie DVDs

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Definitions:

Advertising Rates

The cost associated with placing advertisements in various media channels like television, radio, print, or online.

Television Viewership

The number of viewers or audience size that watch television programming at a given time.

Mystery Shoppers

Individuals hired to pose as customers and evaluate the quality of service, product, and environment of retail stores or other businesses.

Quality

The degree to which a product, service, or process meets or exceeds customer expectations or standards.