Author Question: An all you can eat restaurant illustrates the economic principle: a. of consumers' inability to ... (Read 60 times)

809779 · **on:** Jun 30, 2018

An all you can eat restaurant illustrates the economic principle:
a. of consumers' inability to maximize their total utility.
b. that economic theory clearly breaks down under certain circumstances.
c. that marginal utility is always positive.
d. that consumers will stop eating when marginal utility is zero.
e. that consumers will stop eating when total utility is zero.

Question 2

If average variable cost exceeds marginal cost, then:
a. average variable cost is increasing and the average total cost is decreasing.
b. the average variable cost is decreasing and the average total cost is increasing.
c. both the average variable and average total cost are decreasing.
d. the average variable cost is decreasing and the average total cost may be increasing or decreasing.