Solved

Tran Currently Consumes Only Milk and Cereal

Question 111

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents