Exhibit 6-4 Total Utility for Multiplex Tickets, Video Rentals, and Popcorn

question 88

Multiple Choice

Exhibit 6-4 Total utility for multiplex tickets, video rentals, and popcorn $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Total Utility } \\\text { from Multiplex Tickets }\end{array} & \begin{array} { c } \text { T otal Utility } \\\text { from Video Rentals }\end{array} & \begin{array} { c } \text { Total Utility } \\\text { from Popcorn }\end{array} \\\hline 1 \text { movie ( } 30 \text { utils) } & 1 \text { video (14 utils) } & 1 \text { bag (8 utils) } \\2 \text { movies (54 utils) } & 2 \text { videos (24 utils) } & 2 \text { bags (13 utils) } \\3 \text { movies (72 utils) } & 3 \text { videos (30 utils) } & 3 \text { bags } ( 15 \text { utils) } \\4 \text { movies (84 utils) } & 4 \text { videos (32utils) } & 4 \text { bags (16 utils) } \\\hline\end{array}$$
-In Exhibit 6-4, assume the Multiplex tickets cost $6 each, video rentals cost $2 each, and bags of popcorn cost $1 each. Suppose the consumer has $12 per week to spend on multiplex tickets, video rentals, and popcorn. What combination of goods will give the consumer the most utility?

• A) 1 movie, 3 videos, and no popcorn.
• B) 1 movie, 2 videos, and 2 bags of popcorn.
• C) 1 movie, 1 video, and 4 bags of popcorn.
• D) 2 movies, no videos, and no bags of popcorn.

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Definitions:

Mean

The average of a set of numbers, calculated by dividing the sum of all numbers by the count of numbers.

Investment

The allocation of resources, usually financial, in expectation of generating an income or profit.

Portfolio Expected Return

The weighted average of the expected returns of the assets in an investment portfolio.

Equal Investment

A strategy where equal amounts of capital are allocated to each investment within a portfolio.