Asked by Munei Tshidavhula on May 03, 2024

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Prashanth decides to buy a $75 ticket to a particular New York professional hockey game rather than a $50 ticket for a particular Broadway play. We can conclude that Prashanth

A) is relatively unappreciative of the arts.
B) obtains more marginal utility from the play than from the hockey game.
C) has a higher "marginal utility-to-price ratio" for the hockey game than for the play.
D) has recently attended several other Broadway plays.

Marginal Utility-To-Price Ratio

The comparison of the additional satisfaction received from consuming one more unit of a good to the price of that unit, used to maximize utility.

Utility Maximization

The concept in economics that individuals or households will attempt to get the greatest satisfaction possible from their available resources.

Professional Hockey

Professional hockey encompasses the teams, players, and activities related to the sport of hockey played at the highest level of skill, often as a career, including leagues such as the National Hockey League (NHL).

  • Adopt the concept where marginal utility per unit of price is used to maximize utility.
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ZK
Zybrea KnightMay 07, 2024
Final Answer :
C
Explanation :
Prashanth's decision to buy a more expensive ticket for a hockey game over a cheaper ticket for a Broadway play suggests that he perceives a higher marginal utility-to-price ratio from the hockey game. This means he believes the satisfaction (utility) he gets from the hockey game, relative to its cost, is greater than that from the play.