The Price of a Hamburger Is $1 and the Price

question 234

Multiple Choice

The price of a hamburger is $1 and the price of a movie is $4 and the consumer has $10. A consumer has purchased 2 hamburgers and 2 movies, receiving 25 units of utility for the second hamburger and 100 units of utility for the second movie. The set of goods

• A) is an optimum since the entire income is spent and the marginal utility per dollar spent is the same for the last unit of each good.
• B) is an optimum since the entire income is spent and total utility is minimized.
• C) is not an optimum because the marginal utility per dollar spent is greater for hamburgers than for movies.
• D) is not an optimum because the consumer has not spent all of his money.

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Definitions:

Closed-Loop

A system where the resources are reused, recycled, or adequately disposed of to minimize waste and environmental impact.

Land Fill

A site for the disposal of waste material by burying it, often used as the last resort for waste management.

Returned Goods

Products that are sent back to the retailer or manufacturer by the consumer because of defects, dissatisfaction, or other reasons.

Sustainability Profile

A description of the environmental, social, and economic impacts of an organization or product.