Refer to the Above Table

question 11

Multiple Choice

Refer to the above table. Suppose the price of a hamburger is $2, the price of a movie is $5, and the income of the consumer is $29. What will the consumer's total utility equal at an optimum?
-Refer to the above table. The price of a hamburger is $2, the price of a movie is $5, and the consumer's income is $29. What is the marginal utility per last dollar spent on movies equal to if the consumer is at an optimum?

• A) 50
• B) 40
• C) 20
• D) 10

---

Definitions:

Salvage Value

An estimate of an asset’s value at the end of its useful life.

Incremental Analysis

The process of identifying the financial data that change under alternative courses of action.

Variable Costs

Costs that vary in total directly and proportionately with changes in the activity level.

Fixed Costs

Costs that remain the same in total regardless of changes in the activity level.