Bridget has limited revenue and utilize only wine and cheese

Reference no: EM1331385

Important information about Utility maximization

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.

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

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

Reference no: EM1331385

Questions Cloud

The relationship between business and society : Explain the relationship between business and society?

Business world continues to become more globalized : The business world today continues to become more globalized, and most managers will find themselves working with at least one team member from a different culture.

Estimate the coefficients of the demand model : Estimate the coefficients of the demand model for the data given above. Provide an economic interpretation for each of the coefficients in the estimated demand equation you have compuated.

Managing the social responsibilities : Multinational corporations and other firms must abide by the laws and regulations of their host countries.

Bridget has limited revenue and utilize only wine and cheese : Bridget has a limited revenue and utilize only wine and cheese.

Explain differences between the two e-business models : Explain how marketing differs on a biz to consumer site compared to a biz to biz site. What is a real world site that illustrates this?

Create a program which contains a function called sumn() : Create a program which Contains a function called sumN().

Implications of employee subordination : Implications of Employee Subordination - Do you feel the employee experiencing these issues in the workplace should attempt to rally the troops

Examine the risks and rewards with vendor relationships : Examine the risks and rewards with vendor relationships.

User Account

All Pages