Marginal utility from drinking coffee

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Suppose that Gina's marginal utility from drinking milk is 5 utils per litre and her marginal utility from drinking coffee is 10 utils per litre. If the price of milk is 50 cents per litre and the price of coffee is 80 cents per litre, is Gina maximising her utility? If so, explain why. If not, explain how she should change her spending to increase her utility.

Reference no: EM132313933

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