Multiple Choice
Suppose Mary is currently spending all her income on cookies and milk.The marginal utility of cookies is 15, the price of cookies is $5, the marginal utility of milk is 10, and the price of milk is $1.To increase her total utility, Mary should:
A) buy more cookies and less milk.
B) buy more milk and fewer cookies.
C) buy more of both goods.
D) buy less of both goods.
E) do nothing.She is currently maximizing utility with her limited budget.
Correct Answer:
Verified
Correct Answer:
Verified
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