A local restaurant offers an "all you can eat" ribs special. You pay $11.95, and then you can eat as many servings as you desire at no additional cost. It would follow that you will stop eating when
A) your marginal utility (or value) derived from eating another serving is zero.
B) your total utility (or value) derived from all of the servings consumed just equals $11.95.
C) your marginal utility (or value) derived from another serving equals $11.95.
D) it is physically impossible for you to eat any more.

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, as a consumer consumes more of a product, the marginal utility (or value) derived from each additional unit consumed decreases. Eventually, the marginal utility will reach zero, and the consumer will stop consuming the product. Therefore, the consumer in this scenario will stop eating when the marginal utility derived from eating another serving is zero.

A Local Restaurant Offers an "All You Can Eat" Ribs