An "all you can eat" restaurant illustrates the economic principle:
a. of consumers' inability to maximize their total utility.
b. that economic theory clearly breaks down under certain circumstances.
c. that marginal utility is always positive.
d. that consumers will stop eating when marginal utility is zero.
e. that consumers will stop eating when total utility is zero.
d
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Which of the following indicates an input is being overused relative to the optimal level?
A. MRP = P of input. B. MRP > P of input. C. MRP < P of input. D. MPP > P of output.
Ida May Fuller was the first person to:
A. receive a Social Security check. B. have her Social Security check adjusted for inflation. C. receive Social Security payments for over 20 years. D. petition Congress for indexing Social Security payments.
The relationship between the overall price level in the economy and total production by firms is shown in the:
A. aggregate demand curve. B. aggregate supply curve. C. inflation rate. D. business cycle.
Profit maximization is
a. the only motive of any firm's management. b. a behavioral assumption to simplify analysis. c. the same as satisficing. d. a literal description of a firm's behavior.