Bridget has a limited income and consumes wine and cheese; at 4 bottles/$10 ea and 10 pounds/$4 ea cheese?
The last bottle of wine added 50 units to Bridget’s utility, while the last pound of cheese added 40 units.
- Is Bridget making the utility-maximaizing choice?
- If not, what should she do instead?
Tagged with: bottle of wine • bridget • cheese • last bottle of wine
Filed under: All Things Wine
Like this post? Subscribe to my RSS feed and get loads more!
You are working what is called an optimization problem. Here is a good link that works out a problem like that:
http://www.qcalculus.com/cal08.htm