Which of the following choices best explains how marginal utility causes the average person to eat more food at a buffet than at an a la carte menu where you pay for each item that you want? A. Spending money on food has a very low marginal utility, so customers at a la carte restaurants will generally only buy the cheapest options (which taste worse), causing them to eat less. B. A consumer will eat until the next serving's benefit is less than its cost. At an a la carte restaurant, a consumer will stop ordering even when the marginal utility of the next serving is positive. At an all-you- can-eat buffet, the next serving always costs zero. Therefore, a consumer won't stop until the next bite provides negative marginal utility. C. People go to buffets because they want to eat more. Thus, the customers at buffets are more inclined to eat more food. Marginal utility does not play a factor in how much they eat. incorrect D. Because consumers choose their own portion sizes at a buffet, the marginal benefit of a smaller portion is optimal, making them eat smaller portions. WARNING: OPTION C IS INCORRECT
Which of the following choices best explains how marginal utility causes the average person to eat more food at a buffet than at an a la carte menu where you pay for each item that you want? A. Spending money on food has a very low marginal utility, so customers at a la carte restaurants will generally only buy the cheapest options (which taste worse), causing them to eat less. B. A consumer will eat until the next serving's benefit is less than its cost. At an a la carte restaurant, a consumer will stop ordering even when the marginal utility of the next serving is positive. At an all-you- can-eat buffet, the next serving always costs zero. Therefore, a consumer won't stop until the next bite provides negative marginal utility. C. People go to buffets because they want to eat more. Thus, the customers at buffets are more inclined to eat more food. Marginal utility does not play a factor in how much they eat. incorrect D. Because consumers choose their own portion sizes at a buffet, the marginal benefit of a smaller portion is optimal, making them eat smaller portions. WARNING: OPTION C IS INCORRECT
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter5: Consumer Choice: Individual And Market Demand
Section: Chapter Questions
Problem 3DQ
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Transcribed Image Text:Which of the following choices best explains how marginal utility causes the average person to eat more food at a buffet
than at an a la carte menu where you pay for each item that you want? A. Spending money on food has a very low
marginal utility, so customers at a la carte restaurants will generally only buy the cheapest options (which taste worse),
causing them to eat less. B. A consumer will eat until the next serving's benefit is less than its cost. At an a la carte
restaurant, a consumer will stop ordering even when the marginal utility of the next serving is positive. At an all-you-
can-eat buffet, the next serving always costs zero. Therefore, a consumer won't stop until the next bite provides
negative marginal utility. C. People go to buffets because they want to eat more. Thus, the customers at buffets are
more inclined to eat more food. Marginal utility does not play a factor in how much they eat. incorrect D. Because
consumers choose their own portion sizes at a buffet, the marginal benefit of a smaller portion is optimal, making them
eat smaller portions. WARNING: OPTION C IS INCORRECT
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