A Consumer Has Two Basic Choices: Rent a DVD Movie

question 36

Multiple Choice

A consumer has two basic choices: rent a DVD movie for $4.00 and spend 2 hours watching it, or spend $13 for a miniature golf game that takes 1 hour. If the marginal utilities of the movie and the miniature golf game are equal, and the consumer values time at $12 an hour, the rational consumer will most likely

• A) rent the movie instead of playing miniature golf.
• B) play miniature golf instead of renting the movie.
• C) be indifferent between the movie and the miniature golf game.
• D) not have enough basis for making a utility-maximizing decision.

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Definitions:

Marketing Analyst

A professional who studies market conditions, trends, and consumer behaviors to help businesses make informed decisions about product development, pricing, and promotion.

Zero Moment

The critical moment when a consumer decides to research a product online before making a purchase, emphasizing the importance of online presence.

Digital Device

An electronic device that can receive, store, process, or send digital information.

Potential Purchase

Refers to an item or service a customer is considering buying.