Jose goes to an all-you-can-eat buffet at a Chinese restaurant and consumes three plates of food.He does not go back for a fourth plate of food because
A) The price of the fourth plate is too high.
B) He has reached the point of increasing marginal utility.
C) The marginal utility of the fourth plate would be zero or even negative.
D) His total utility would increase with the fourth plate of food.

Question

Quizplus · Accepted Answer

The marginal utility of each additional plate of food typically decreases (law of diminishing marginal utility). Eventually, the marginal utility of the next plate will become zero or even negative, meaning that the additional satisfaction gained from consuming it is not worth the cost (in this case, the cost is the feeling of being overly stuffed or uncomfortable). Therefore, Jose does not go back for a fourth plate of food because the marginal utility of the fourth plate would be zero or even negative.

Jose Goes to an All-You-Can-Eat Buffet at a Chinese Restaurant