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

question 32

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. In the consumer equilibrium, what is the marginal utility per dollar for each of the three goods?

• A) 5 utils per dollar.
• B) 9 utils per dollar.
• C) 13 utils per dollar.
• D) 22 utils per dollar.

Calculate the effective annual rate (EAR) for different compounding frequencies.

Determine the number of payments or the duration required to repay a loan under various interest rates and compounding periods.

Identify the necessary rate of return to meet a specific financial goal.

Compare different investment or loan options based on their effective interest rates or returns.

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Definitions:

Qualitative Characteristic

Attributes that describe the non-quantifiable aspects of financial information, emphasizing the quality and utility of reported data.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of an investment or project.

Residual Value

The estimated value of a fixed asset at the end of its useful life, crucial for calculating depreciation.

Future Cash Inflows

Projected receipts of cash from investment, operations, or financing activities in future periods.