You go to an "all-you-can-eat" buffet. If you maximize utility, the marginal utility of the last bite that you eat will be

Related BrainMass Solutions

• Multiple Choice Questions: Utility Theory

  If you maximize utility, the marginal utility of the last bite that you eat will be a. equal to the price of the buffet b. as high as possible c. zero d. dependent on how much you like the buffet 6.

• Question

  
  Business Example: Buffet-style restaurants entice customers with "all you can eat" policies, all the while knowing that each additional plate of food provides less utility than the one before.

• Diminishing marginal concept

  This is the premise on which buffet-style restaurants operate. They entice you with "all you can eat," all the while knowing each additional plate of food provides less utility than the one before.

• Explanation of the problem in the attachment

  To maximize utility when given two goods, your first instinct should always be that the MU of two goods should be the same.

• Marginal Utility

  You're right, all of these will increase in marginal utility for the buyer until a certain point where there will just be too much chicken and people will want something else or you will not need anymore paint or even lobster that can get bland after

• Household reaction on spending

  Draw a graph of total and marginal utility. If the cookies cost the CM 5 cents each, what is the maximum number of cookies he would most likely eat? Please refer to EXCEL for Marginal utility and marginal cost.

• Marginal utility and decision making

  Obviously my purchases will differ from yours. But as an example I will consider the used car I bought last summer. I needed a larger vehicle, since I often have to carry people and things around with me.

• Consumer Choice Theory: Marginal Utility of Chicken Pieces

  My marginal utility (MU) for each piece can be measured by the amount of money that I would be willing to pay to get it.

• The amount of utility

  You might have all that money but if in the next period you won't be able to eat, naturally the utility derived from eating in the second period is higher than the utility from going to Mexico. d.