Mathematics · Optimization
An individual's utility function for two goods—milk (M) and butter (B)—is given as U(M, B) = 5M + 10B. The cost of each unit of both goods is Rs 1, and the individual's weekly budget is Rs 5. Find the individual's utility-maximizing choice:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 10 units of M and 5 units of B✓
- 22 units of M and 3 units of B
- 35 units of M and 0 units of B
- 42.5 units of M and 2.5 units of B
Correct answer
0 units of M and 5 units of B
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