Terri currently consumes 10 hamburgers and 2 shirts per month. At her current rates of consumption, her marginal utility of hamburgers is 10 and her marginal utility of shirts is 50. If the price of hamburgers is $2 each, while the price of a shirt is $25, Terri
A) is maximizing her utility.
B) could improve her total utility by buying fewer hamburgers and more shirts.
C) could improve her total utility by buying fewer shirts and more hamburgers.
D) could improve her total utility by spending less on both goods.
Correct Answer:
Verified
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