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For Two Goods, Coffee and Scones, Suppose That MU(coffee)/P(coffee)= 4

Question 15

Multiple Choice

For two goods, coffee and scones, suppose that MU(coffee) /P(coffee) = 4 and MU(scones) /P(scones) = 3. To maximize your total utility from these two goods, you should purchase:


A) less coffee and more scones.
B) more coffee and fewer scones.
C) less coffee and fewer scones.
D) more coffee and more scones.

Correct Answer:

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