February 27, 2017

Homework Help: home economics

Posted by Gar on Thursday, April 14, 2011 at 2:26pm.

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 added 40 units.
A. Is Bridget making the utility-maximizing choice? Why or why not?
B. If not, what should she do instead? Why

Answer This Question

First Name:
School Subject:

Related Questions

More Related Questions