From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have concluded that the:
A) Marginal cost of waiting is less than the marginal benefit of being served
B) Marginal cost of waiting is greater than the marginal benefit of being served
C) Management is exhibiting irrational behavior by not maximizing profits
D) Management is making an assumption that other things are equal

Question

Quizplus · Accepted Answer

The marginal cost of waiting refers to the cost of time and effort required to wait in line, and the marginal benefit of being served refers to the satisfaction or value gained from being served. Consumers leaving the restaurant indicate that they perceive the marginal cost of waiting to be greater than the marginal benefit of being served, which is why they choose to leave. This may be due to a variety of factors such as impatience, inconvenience, or the availability of other options. Therefore, option B is the correct answer. Option A is incorrect because if the marginal cost of waiting was less than the marginal benefit of being served, consumers would not leave the restaurant. Option C is also incorrect as there is no indication of irrational behavior by management. Option D is not relevant to the situation.

From an Economic Perspective, When Consumers Leave a Fast-Food Restaurant