Suppose that Ms. Thomson is currently exhausting her money income by purchasing 10 units of A and 8 units of B at prices of $6 and $3, respectively. The marginal utility of the last units of A and B are 30 and 18, respectively. These data suggest that Ms. Thomson
Multiple Choice
a. has preferences that are at odds with the principle of diminishing marginal utility.
b. considers A and B to be complementary goods.
c. should buy more A and less B.
d. should buy more B and less A.
