Giving 100 ! in a year, tony rents 50 dvds at $6 each and pays $50 for 10,000 gallons of tap water. tony is maximizing total utility. if tony's marginal utility from water is 0.4 units per gallon, his marginal utility from a dvd rental is ? units. how many units is tony's marginal utility from a dvd rental?

Cost per DVD is $6 each

Cost per gallon of tap water is $50/10000 = $0.005

In order to maximizing total utility for Tony:

The marginal utility of a DVD rental / cost per DVD

= The marginal utility of a gallon of water / cost per gallon

The marginal utility of a DVD rental

= The marginal utility of a gallon of water * 6 / 0.005

= 480 units per DVD

it was decent, could have been a little better.. how bout you lol.

typically a loft will include modern kitchen and bathrooms, this increases the price tag. lofts also have a good amount of open space, this requires more heating and electricity. lofts are also in older buildings, this means that maintaining the location increases the bill. keep in mind this is without talking about the high state and property taxes.

i hope this you! : )