?
a. No, Bridget is not making the utility-maximizing choice. The marginal utility of the last bottle of wine (50 units) is higher than the marginal utility of the last pound of cheese (40 units). This indicates that Bridget should be consuming more wine and less cheese in order to maximize her utility.
b. Bridget should increase her consumption of wine and decrease her consumption of cheese in order to maximize her utility. She should purchase five bottles of wine and nine pounds of cheese, as this will give her the highest utility. This is because the marginal utility of the last bottle of wine (50 units) is higher than the marginal utility of the last pound of cheese (40 units).
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
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