Rebecca receives 12 units of marginal utility from consuming a box of raisins. She receives 10 units
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Question:
Rebecca receives 12 units of marginal utility from consuming a box of raisins. She receives 10 units of marginal utility from consuming a box of peanuts. If a box of raisins costs her $1 but a box of peanuts costs her only 95 cents, in order to maximize utility Rebecca should:
Select one:
a. buy more raisins and fewer peanuts.
b. spend all of her income on peanuts and buy no raisins.
c. buy more peanuts and fewer raisins.
d. buy and equal amount of raisins and peanuts.
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