Illustrate using maximization choice with current income, Ask an Expert

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Illustrate using maximization choice with current income & prices of two goods - wine & cheese.

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 Bridget 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.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M922943

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