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Below is the marginal utilities Rachel receives from books and coffee. Units of Books Marginal Utility of Books Units of Coffee Marginal Utility of Coffee
Below is the marginal utilities Rachel receives from books and coffee. Units of Books Marginal Utility of Books Units of Coffee Marginal Utility of Coffee 1 16 1 6 2 14 2 5 3 12 3 4 4 10 4 3 5 8 5 2 6 6 6 1 Rachel has $10 of income and spends it all on books and coffee. If the price of a book is $2 and the price of a coffee is $1, Rachel will maximize utility by purchasing which of the following combinations of books and coffee? (2 points) 5 books and 0 coffees 4 books and 4 coffees 4 books and 2 coffees 3 books and 4 coffees 2 books and 6 coffees
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