Bridget has limited income and consumes

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Bridget has limited income and consumes

Bridget has 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 Bridgets utility, while the last pound of cheese added 40 units.

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

b. If not, what should she do instead? Why
While you havent actually asked the question, I already know the…

. Bridget should buy more cheese and less wine.

 

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