14. Suppose that Ginas marginal utility from drinking milk is 5 utils per ounce, and her marginal...
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14. Suppose that Gina’s marginal utility from drinking milk is 5 utils per ounce, and her marginal utility from eating cereal is 10 utils per ounce. If the price of milk is 50 cents per ounce and the price of cereal is 80 cents per ounce, is Gina maximizing her utility? If so, explain how you know. If not, explain how she should change her spending to increase her utility.
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