Question

Which statement would be true about a person who goes to an all-you-can-eat restaurant? (LO2) a) She will never eat more food than she would at a regular restaurant. b) She will eat until closing time. c) She will eat until the marginal utility of the last portion of food is zero. d) She will keep eating while her marginal utility is rising.

Short answer

The correct answer is statement c: "She will eat until the marginal utility of the last portion of food is zero." This statement represents the behavior of a person who goes to an all-you-can-eat restaurant concerning marginal utility, as they will continue consuming food until the additional satisfaction gained from eating the next portion becomes zero or even negative.

Step-by-step solution

Analyzing Statement a

Statement a says: "She will never eat more food than she would at a regular restaurant." This statement is not necessarily true since the person can eat more food in an all-you-can-eat restaurant if she desires to do so, depending on her appetite and preferences.

Analyzing Statement b

Statement b says: "She will eat until closing time." This statement is also not necessarily true, as it depends on the individual's preferences and appetite. A person may feel satisfied and stop eating before the restaurant closes.

Analyzing Statement c

Statement c says: "She will eat until the marginal utility of the last portion of food is zero." This statement is true. According to the concept of marginal utility, a person will continue consuming food until the additional satisfaction gained from eating the next portion becomes zero or even negative (due to overeating and discomfort). This is when a person will stop eating because they are not gaining any more satisfaction from consuming additional food.

Analyzing Statement d

Statement d says: "She will keep eating while her marginal utility is rising." This statement is not true because people typically stop eating when the marginal utility starts to decrease, not when it's still rising. A person's satisfaction from consuming an additional portion of food will eventually decrease, and they will stop eating when it becomes zero or negative. In conclusion: The correct answer is statement c (She will eat until the marginal utility of the last portion of food is zero.).