When DVDs and Hamburgers Were the Same Price, Mavis Consumed

question 323

Multiple Choice

When DVDs and hamburgers were the same price, Mavis consumed 3 hamburgers and 5 DVDs, and Mavis received 10 utils from the last hamburger and 15 utils from the last DVD consumed. What should be Mavis' consumption strategy?

• A) consume more DVDs and fewer burgers
• B) consume more burgers and fewer DVDs
• C) consume more of both items
• D) consume less of both items

---

Definitions:

Profitability Index

A calculation that measures the relative profitability of an investment, determined by dividing the present value of future cash flows by the initial investment cost.

Time Value

The concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.

Money

A medium of exchange that is widely accepted in transactions for goods and services and the repayment of debts.