Final answer:
Ambrose will choose b) 144 units of nuts.
Step-by-step explanation:
In order to determine how many units of nuts Ambrose will choose, we need to compare the marginal utilities per dollar spent on nuts and berries. Ambrose's utility function is u(x1, x2) = 4x1 + 2x2. The marginal utility of nuts is equal to 4, and the marginal utility of berries is equal to 2. Therefore, Ambrose will allocate his income to maximize his utility by choosing more units of nuts than berries. To calculate the optimal amount of nuts that Ambrose will choose, we need to compare the prices of nuts and berries. The price of nuts is $1, and the price of berries is $6. Since the marginal utility per dollar spent on nuts is higher than the marginal utility per dollar spent on berries, Ambrose will choose more units of nuts. Given that Ambrose's income is $252, and the price of nuts is $1, Ambrose will choose 252 units of nuts, which corresponds to option (b) 144 units of nuts.