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Utility maximization choice with current income

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Reference no: EM1314718

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.

Reference no: EM1314718

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