Imagine you have a movie streaming platform that offers new movies at the time of release. Your market research has revealed the following about your typical consumers’ satisfaction from watching movies: Number of movies (per month) Total Utility or Satisfaction 0 0 1 25 2 47 3 66 4 82 5 94 6 105 The maximum number of movies the consumer watches in a month is 6. (a) Construct a third column for this table to derive “Marginal Utility” corresponding to the number of movies watched. Explain in words what this concept means and why it is important to derive the marginal utilities in pricing.
Imagine you have a movie streaming platform that offers new movies at the time of release. Your market research has revealed the following about your typical consumers’ satisfaction from watching movies: Number of movies (per month) Total Utility or Satisfaction 0 0 1 25 2 47 3 66 4 82 5 94 6 105 The maximum number of movies the consumer watches in a month is 6. (a) Construct a third column for this table to derive “Marginal Utility” corresponding to the number of movies watched. Explain in words what this concept means and why it is important to derive the marginal utilities in pricing.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 3SQP
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Imagine you have a movie streaming platform that offers new movies at the time of release. Your
Number of movies (per month) | Total Utility or Satisfaction |
0 | 0 |
1 | 25 |
2 | 47 |
3 | 66 |
4 | 82 |
5 | 94 |
6 | 105 |
The maximum number of movies the consumer watches in a month is 6.
(a) Construct a third column for this table to derive “
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