home economics

A. No, Bridget is not making the utility-maximizing choice. Her decision to purchase four bottles of wine and ten pounds of cheese yielded a marginal utility of 90 units (50 + 40), but there is a possibility for her to achieve a higher utility by changing her consumption choice to allocate more budget towards either wine or cheese. B. To achieve a higher utility, Bridget should adjust her consumption choice to allocate a higher budget towards either wine or cheese. For example, if she chooses to allocate more budget towards wine and purchase an additional bottle, she will get an additional 50 utility units, which is equivalent to an additional $40. Alternatively, she can allocate more of her budget towards cheese to purchase an additional pound, which will yield an additional 40 units of utility. By adjusting her budget allocation accordingly, she will attain overall higher utility and thus maximize her satisfaction of consuming wine and cheese.