The following table indicates Sharona's marginal utilities from the additional consumption of goods A and B. The first and third columns of the table show the quantities of goods A and B consumed. The second and the fourth columns show Sharona's marginal utilities from each additional unit of goods A and B consumed. The price of A is $2 per unit and the price of B is $4 per unit. If Sharona's budget is $12, then which of the following combinations would maximize her total utility?
Table 6.6
A) 0 units of A; 3 units of B
B) 4 units of A; 1 unit of B
C) 4 units of each good
D) 1 unit of A; 4 units of B
E) 2 units of each good
Correct Answer:
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