4
answers
0
watching
282
views
20 Dec 2018
Mr. Robert has a limited income and consumes only wine and cheese; his 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 Robertâs utility, while the last pound of cheese added 40 units. -
1. Is Mr. Robert making the utility âmaximizing choice? Why or Why not?
2. If not, what should he do instead? Why?
Mr. Robert has a limited income and consumes only wine and cheese; his 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 Robertâs utility, while the last pound of cheese added 40 units. -
1. Is Mr. Robert making the utility âmaximizing choice? Why or Why not?
2. If not, what should he do instead? Why?
4
answers
0
watching
282
views
For unlimited access to Homework Help, a Homework+ subscription is required.
larryrambo777Lv10
26 Mar 2023
Already have an account? Log in
Elin HesselLv2
21 Dec 2018
Already have an account? Log in