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The table describes the utility Alice receives from her consumption of movies or used DVDs. Assume that movies cost $5 and used DVDs cost $1.
The table describes the utility Alice receives from her consumption of movies or used DVDs. Assume that movies cost $5 and used DVDs cost $1. If Alice has $24, the bundle of goods that would maximize her utility would be Movies Consumed Total Utility Used DVDs Consumed Total Utility 0 0 200 50 2 350 80 400 100 480 110 480 103 5 movies and 1 used DVDs. 4 movies and 4 used DVD. 4 movies and 2 used DVDs. 2 movies and 2 used DVDs. 3 movies and 5 used DVDs
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