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explain how this is the right answer. Question: Suppose that Mike allocates his income between milk and cereal. Milk costs $2.5/gallon and cereal costs $5/box.
explain how this is the right answer. Question: Suppose that Mike allocates his income between milk and cereal. Milk costs $2.5/gallon and cereal costs $5/box. Mike has $95/week to spend on these two goods. The following table shows Mike's preference for consumption bundles as well as how Mike's marginal utility (MU) for milk and cereal, respectively, varies as consumption varies. Given the information provided above, how should Mike allocates his income between milk and cereal? As this is his optional consumption bundle, Mike should purchase ____ gallons of milk and _____ boxes of cereal. Answer: 18; 10
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