Newspaper vending machines are often built so that customers can pay to lift a door and take a paper off a pile of daily newspapers. Newspaper distributors are not concerned about customers taking the whole stack of papers because
A) the total utility of a daily newspaper is zero.
B) the marginal utility of any one daily newspaper is zero.
C) the marginal utility of a second daily newspaper is zero.
D) the price of a daily newspaper is relatively low.

Question

Quizplus · Accepted Answer

The marginal utility of a second daily newspaper is zero because once a customer has one newspaper, additional copies do not provide additional value, reducing the incentive to take more than one.

Newspaper Vending Machines Are Often Built So That Customers Can