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Problem:

Assume your friend likes movies. She watches some movies on the DVD, which she likes, but she prefers to see movies at multiplex; actually, she likes seeing movies at multiplex twice as much as she likes watching movies on the DVD. The total cost of acquiring and watching the DVD for your friend is $25. The total cost of going to multiplex to see the movie is $40.

Required:

problem 1: What may be comprised in the “total cost” of acquiring and watching the movie on the DVD? What about the “total cost” of seeing a movie at the multiplex?

problem 2: Do you’ve any recommendation for your friend regarding her consumption of the movies?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M910598

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