Describe maximizing utility

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Q1. Liliana sells DVD's. It costs her $40 an hour to keep the store opem, $500 for monthly rent, and $3 an hour for electricity. How many DVD's will she have to sell to keep the store open for an extra hour to make profit, if each DVD is $12?

Q2. Someone paying $800 to fly from one city to another instead of paying only $100 for a bus trip between the two cities is making an irrational choice and is thus not maximizing his utility. Is this true, Explain?

Reference no: EM136759

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