Asked by
Kendall Newman
on Dec 12, 2024
Verified
A restaurant offers an "all you can eat" meal for $9. Tyrone has eaten three servings and is trying to decide whether or not to go back for a fourth. The economic way of thinking suggests that Tyrone should go back for the fourth serving if and only if
A) his marginal benefit of the additional serving is greater than zero.
B) his marginal benefit of the additional serving is at least $3.
C) his marginal benefit of the additional serving is $9 or more.
D) his total value from the meal exceeds $9.
Marginal Benefit
The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.
Additional Serving
An extra portion or second helping of food provided after the consumption of an initial serving.
Economic Thinking
A method of evaluating issues and making decisions based on the principles of economics, such as cost-benefit analysis, scarcity, and opportunity cost.
- Recognize the function of marginal analysis in the process of economic decision-making.
- Gain insight into the effects of economizing actions and marginal adjustments.
Verified Answer
DO
Learning Objectives
- Recognize the function of marginal analysis in the process of economic decision-making.
- Gain insight into the effects of economizing actions and marginal adjustments.