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:Multiple Choicemanagement is exhibiting irrational behaviour by not maximizing profits.marginal cost of waiting is less than the marginal benefit of being served.management is making an assumption that other things are equal.marginal cost of waiting is greater than the marginal benefit of being served.
Question
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:Multiple Choicemanagement is exhibiting irrational behaviour by not maximizing profits.marginal cost of waiting is less than the marginal benefit of being served.management is making an assumption that other things are equal.marginal cost of waiting is greater than the marginal benefit of being served.
Solution
The correct answer is: marginal cost of waiting is greater than the marginal benefit of being served.
Here's why:
From an economic perspective, consumers make decisions based on a cost-benefit analysis. In this case, the cost is the time spent waiting in line and the benefit is the food they receive from the fast-food restaurant.
If consumers decide to leave because the lines are too long, they have determined that the cost (waiting in line) outweighs the benefit (receiving the food). In economic terms, the marginal cost (the cost of waiting an additional unit of time) is greater than the marginal benefit (the benefit of receiving the food a unit of time sooner). Therefore, they choose to leave the restaurant.
Similar Questions
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