Use the law of diminishing marginal utility to explain why Domino's and Pizza Hut allow the purchase of a second pizza for only $4 when one pays full price (around $10)for the first pizza. Why not simply charge $7 a pizza instead?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q202: What is a budget line? What does
Q203: What is the marginal rate of substitution,
Q204: Are there ever exceptions to the law
Q213: How do you calculate consumer's surplus? What
Q234: You have five hours left to study
Q235: If I use 1,000 gallons of water
Q236: Draw the point of consumer equilibrium from
Q237: What is the relationship between marginal utility
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents