The solution offered by McPick 2 for optimal choice problem
Introduction: The optimal choice is defined as the decision made by the consumer to spend more of their income to expand their consumer basket and increase their utility overall from doing this optimization. It can be understood as the highest satisfaction achievable in a given budget constraint.
Explanation of Solution
McDonald's introduced the McPick 2 where it offered 2 cheeseburgers and small fries or a McChicken and a mozzarella stick thus proving that the company was considerate of the consumer base to optimize their utility. McDonald's did so by increasing the volume of the consumer basket while the expenditure remained the same.
The prices of the commodity were bound under a
Therefore, consumers of the McPick 2 were able to choose a more cost-efficient product which is the basic principle of the consumer’s optimal choice.
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