Suppose the Marginal Utility (MU)of Paperback Books Is 40 Utils

question 85

Multiple Choice

Suppose the marginal utility (MU) of paperback books is 40 utils and each costs $5 while the MU of DVD rentals is 20 utils and each rents for $4.If you consume one movie and one book per week,are you attaining consumer equilibrium?

• A) Yes, so there is no need to change.
• B) No. You need to buy more books and rent fewer DVDs.
• C) No. You need to rent more DVDs and buy fewer books.
• D) There is not enough information to answer the question.

---

Definitions:

Multidomestic Corporation

A company that operates in multiple countries, adapting its products and services to each local market.

Autonomous Operating Units

These are distinct parts of a company that operate independently with their own management and profit goals, but are still connected to the larger organization.

Host-Country Nationals

Employees who are citizens of the country in which a multinational company's branch or office is located, as opposed to expatriates.

Overseas Employees

Workers who are employed in a country different from which the employing organization is based.