February 25, 2017

Homework Help: managerial econ

Posted by jean on Wednesday, February 6, 2008 at 8:32pm.

Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound. The last bottle of wine added 50 units to Bridget's utility, while the last pound of cheese added 40 units. Is Bridget making the utility-maximizing choice? Why or why not? If not, what should she do instead? Why?

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