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-maximizingcombinationof rides and games. Provide a rationale for the combination you choose.

Quantity of Rides	Quantity of Games	MURides	MUGames	MURides/PRides	MUGames/PGames
1	22	50	26
2	24	42	18
3	26	36	14
4	28	26	10

a) Sometimes, small stores continue to operate - even though they donotearneconomic profits. Are such decisions logical? Elucidate.

b) Fill in the blanks in the table below, and use it to answer this question.

Q	VC	TC	MC = TC /Q	AVC = VC / Q	AFC = FC / Q	ATC = TC / Q
1	30	90
2	50	110
3	90	150
4	140	200
5	200	260

*What is the firm's fixed cost? Explain.

*Based on the table, what can you say about the relationship between MC and ATC? Why does this occur?

*Based on the table, what can you say about the relationship between AVC and ATC? Why does this occur?