Suppose that Jacob is going to a buffet restaurant that allows him to eat as many chicken wings as he wants at a fixed price. How would you predict the number of chicken wings that Jacob will eat using utility theory?
What will be an ideal response?
Utility theory predicts that Jacob will try to maximize his utility from his chicken wing consumption at the restaurant. This means that he will continue to eat one more chicken wing until his marginal utility becomes zero and so his total utility from the chicken wings is maximized.
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