Is bridget making the utility-maximizing choice


Question: 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. PLEASE SHOW SLOPE IN A GRAPH

a. Is Bridget making the utility-maximizing choice? Why or why not?

b. If not, what should she do instead? Why?

Solution Preview :

Prepared by a verified Expert
Microeconomics: Is bridget making the utility-maximizing choice
Reference No:- TGS02093104

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)