The Utility Function for Raj Is U = Min{4M, T}

question 11

Multiple Choice

The utility function for Raj is U = min{4M, T}, where M is pints of milk and T is cans of tuna. Raj has $90 to spend on tuna (priced at $2 per can) and milk (priced at $1 per pint) . What is Raj's utility-maximizing consumption bundle?

• A) M = 30 and T = 30
• B) M = 40 and T = 25
• C) M = 10 and T = 40
• D) M = 15 and T = 65

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