In 2007, Americans downloaded 800 million singles at 99 each and 40 million albums at $10 each.

Question:

In 2007, Americans downloaded 800 million singles at 99¢ each and 40 million albums at $10 each. They also bought 3 million singles on a disc at $4.75 each and 500 million albums on discs at $15. What does marginal utility theory tell you about the ratio of the marginal utility from singles on discs to the marginal utility from singles downloads? What does it tell you about the ratio of the marginal utility from albums on discs to the marginal utility from album downloads?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Foundations Of Microeconomics

ISBN: 9780132830881

6th Edition

Authors: Robin Bade, Michael Parkin

Question Posted: