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Mattie consumes milk and cookies. Assume Mattie has a strictly diminishing marginal rate of substitution over these two goods. Suppose Mattie is currently spending all
Mattie consumes milk and cookies. Assume Mattie has a strictly diminishing marginal rate of substitution over these two goods. Suppose Mattie is currently spending all of her available income on a bundle of milk and cookies. At her current bundle of milk and cookies, Mattie's marginal utility from consuming an additional glass of milk is 6 utils and her marginal utility from consuming an additional cookie is 3 utils. If the current price of a glass of milk is $3 and the price of cookie is $2, which of the following statements must be true: O There is not enough information to know whether Mattie should consume more milk or more cookies. O Mattie should consume more cookies and less milk O Mattie should consume more milk and fewer cookies O Mattie's current bundle of milk and cookies maximizes her utility
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