Is Bridget making the utility-maximizing choice?
Not what you're looking for? Search our solutions OR ask your own Custom question.
This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!
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 Bridgetâ??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?
A Complete, Neat and Step-by-step Solution is provided in the attached file.