Individuals who haven't studied economics may not understand how all-you-can-eat buffets manage to make money.This can be explained by the concept of ________,which makes each trip to the buffet line less satisfactory than the previous one.

Question

Quizplus · Accepted Answer

Diminishing marginal utility refers to the idea that as someone consumes more and more of a good, the satisfaction or utility they get from each additional unit decreases. In the case of all-you-can-eat buffets, each trip to the buffet line will likely provide less satisfaction than the previous trip due to this concept. This means that customers may ultimately consume less food than they would in a non-buffet setting, allowing the buffet to still make a profit despite offering unlimited portions.

Individuals Who Haven't Studied Economics May Not Understand How All-You-Can-Eat