b)At a local amusement park, the price of rides is $2 per ride and the price of
ID: 1222894 • Letter: B
Question
b)At a local amusement park, the price of rides is $2 per ride and the price of games is $1 per game. If your budget is $30, complete the table below, and use it to identify yourutility-maximizing combinationof rides and games. Provide a rationale for the combination you choose.
Quantity of
Rides
Quantity of
Games
Marginal Utility of
Rides
MarginalUtility of
Games
MURides/PRides
MUGames/PGames
1
28
50
10
2
26
42
14
3
24
36
18
4
22
26
26
Quantity of
Rides
Quantity of
Games
Marginal Utility of
Rides
MarginalUtility of
Games
MURides/PRides
MUGames/PGames
1
28
50
10
2
26
42
14
3
24
36
18
4
22
26
26
Explanation / Answer
I will choose the combination of 24 Games and 3 rides the utility derived from both will be maximized and same at this point.
MURIDE/ P ride MU GAmes/ P games 50/2=25 10/1=10 42/2=24 14/1=14 36/2=18 18/1=18 26/2=13 16/1=26Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.