Jose goes to an all-you-can-eat buffet at a Chinese restaurant and consumes three plates of food.He does not go back for a fourth plate of food because
A)The price of the fourth plate is too high.
B)He has reached the point of increasing marginal utility.
C)The marginal utility of the fourth plate would no longer be positive.
D)His total utility would increase with the fourth plate of food.

Question

Quizplus · Accepted Answer

According to the principle of diminishing marginal utility, as a person consumes more of a good, the additional satisfaction or utility that they receive from each additional unit of the good decreases. Therefore, at some point, the marginal utility of each additional unit of the good becomes negative, meaning that consuming more actually decreases total utility. In this case, since Jose has already consumed three plates of food, it is likely that the marginal utility of the fourth plate would no longer be positive, and consuming it would cause his total utility to decrease. Consequently, he does not go back for a fourth plate of food.

Jose Goes to an All-You-Can-Eat Buffet at a Chinese Restaurant