Question

A local restaurant offers an "all you can eat" Sunday brunch for $12. Jenica eats two servings but leaves half of a third helping uneaten. Why?
A. Her marginal value of brunch has fallen below $12.
B. Her marginal value of additional food has fallen below $4 ($12 divided by 3 servings).
C. Her marginal value of an additional bite of food has fallen to zero.
D. The total value she places on brunch today exactly equals $12.

Answer 1

Answer:

C. Her marginal value of an additional bite of food has fallen to zero.

Explanation:

Marginal value is a concept used in understanding consumer choices and can be defined as the incremental value derived from consuming an additional unit of a product or service. Jenica's marginal value has fallen to zero since she does not derive any more value from consuming an additional bite of the remaining or uneaten portion of food.