Tran currently consumes only milk and cereal. She drinks 4 quarts of milk priced at $3 per quart and gets 30 utils for the last quart. She consumes eight boxes of cereal at a price of $6 per box and gets 60 utils for the last box. Is Tran maximizing her utility?
A) No. She should consume more milk.
B) No. She should consume more honey.
C) Yes.
D) No. She should consume more of both goods.
Correct Answer:
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