Different people eat different amounts of food when they go to buffet restaurants, even though they all pay the same price. Explain how this relates to the marginal principle
What will be an ideal response?
The marginal monetary cost of eating more is zero, so people will eat until they would not enjoy eating other bite. There is an implicit cost of eating more once you are full (such as extra weight gain and physical discomfort). Therefore, people will eat until marginal benefit equals marginal cost, and this will occur at different amounts of food for different people.
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The unemployment rate equals 100 multiplied by the
A) number of people unemployed divided by the number of people employed. B) number of people unemployed divided by the population. C) number of people unemployed divided by the labor force. D) number of people unemployed divided by the working-age population. E) labor force divided by the number of people unemployed.
Why do some people think that the productivity slowdown since 1973 is just a return to normalcy after fast productivity growth during the previous 25 years?
A) Productivity growth of the previous 25 years was abnormally low. B) The Great Depression and World War II had prevented technological opportunities from being exploited. C) The United States is the only country to face the slowdown, due to poor regulatory decisions. D) The United States has allowed countries like Japan to steal its technological breakthroughs.