Question

From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have concluded that the:a) Marginal cost of waiting is greater than the marginal benefit of being served b) Marginal cost of waiting is less than the marginal benefit of being served c) Management is making an assumption that other things are equal d) Management is exhibiting irrational behavior by not maximizing profits

Answer 1

Answer:

a) Marginal cost of waiting is greater than the marginal benefit of being served

Explanation:

For an economic perspective, customer leave a fast food restaurant as they find the marginal cost of waiting is higher than the cost of marginal benefit of being served at restaurant.

Marginal cost: In economics, it is a cost that is incurred for an additional unit of benefit received out of certain action or activity.

Marginal benefit: It is a benefit received for an additional unit of cost incurred during the activity taken place.

Therefore, customer have done analysis on the benefit of waiting in a queue for getting served at restaurant, which he found that marginal cost is greater than the marginal benefit of being served.