Final answer:
To determine which product provides greater total utility, we calculate the marginal utility per dollar for paperback books and DVD rentals. Paperback books offer 8 utils per dollar, while DVDs offer 5 utils per dollar, making paperback books the more cost-effective choice for utility.
Step-by-step explanation:
The student's question deals with the concept of marginal utility (MU) and how to determine which product provides a greater total utility. The concept of marginal utility per dollar is used to compare the satisfaction per dollar spent on different goods or services. In this case, we calculate the marginal utility per dollar for both the paperback books and the DVD rentals to see which one provides a more cost-effective level of satisfaction.
To find the marginal utility per dollar, we divide the marginal utility of an item by its cost. For paperback books, the calculation would be 40 utils divided by $5, resulting in 8 utils per dollar. For DVD rentals, it's 20 utils divided by $4, equating to 5 utils per dollar. Therefore, paperback books provide greater total utility per dollar spent compared to DVD rentals.