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You have paid $10 to get into an amusement park. Now every ride costs $2. Your marginal benefit for the x'thride follows the equation MB
You have paid $10 to get into an amusement park. Now every ride costs $2. Your marginal benefit for the x'thride follows the equation MB = $27 - $3x.
So, for example, the marginal benefit of the first ride (x = 1) is $27 - $3 = $24. The MB of the 2nd ride is $27 - 6 = $21 . .. and so on.
Assuming you are an economically rational consumer how many rides will you go on?
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