At Revolution Doughnuts in Fort Collins, Colorado, a cup of coffee or a doughnut is $1. Suppose Hannah loves going to Revolution Doughnuts. She spends $5 a day at the shop on 3 doughnuts and 2 cups of coffee. Is Hannah maximizing her total utility?
A) No.
B) Maybe, but I need to know more about Hannah's income.
C) Yes.
D) Maybe, but I need to know more about Hannah's marginal utility per dollar for each of the two goods.
Correct Answer:
Verified
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