Curly loves pizza,and often has supper at an all-you-can eat pizza buffet.Curly eats more pizza there than at the Buy-By-the-Slice pizza stand in the student union because
A)Curly is irrational and has no will-power.
B)Curly does not experience diminishing marginal utility for pizza.
C)Curly is setting his Marginal Utility for pizza per dollar equal at each place.
D)Curly is setting his Marginal Utility for pizza equal at each place.

Question

Quizplus · Accepted Answer

Curly is setting his Marginal Utility for pizza per dollar equal at each place. This means that he is taking into consideration the amount of money he is spending and the satisfaction he is getting from each additional slice of pizza. As the all-you-can-eat buffet has a fixed price, Curly can eat more pizza there and still have the same marginal utility per dollar as at the Buy-By-the-Slice pizza stand where he has to pay a fixed price per slice. Therefore, he eats more pizza at the buffet as it gives him more value for his money.

Curly Loves Pizza,and Often Has Supper at an All-You-Can Eat