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At Revolution Doughnuts in Fort Collins, Colorado, a Cup of Coffee

Question 366

Multiple Choice

At Revolution Doughnuts in Fort Collins, Colorado, a cup of coffee or a doughnut is $1. Suppose Hannah loves going to Revolution Doughnuts. Currently, her marginal utility per dollar from doughnuts is 14 and her marginal utility per dollar from coffee is 14. Is Hannah maximizing her total utility?


A) No, she needs to buy more doughnuts and less coffee.
B) Yes, she is maximizing utility.
C) No, she needs to buy more coffee and fewer doughnuts.
D) No, she needs to buy fewer doughnuts and less coffee.

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