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April 26, 2015

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

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