Diminishing marginal utility help
I came across this economics question and got stuck.
The mark scheme states that at an all you can eat buffet, "most people will eat only until their marginal utility matches the price they paid".
Please could someone explain this as why wouldn't they eat until their total utility is maximised instead? What is the significance of marginal utility equaling price?
The mark scheme states that at an all you can eat buffet, "most people will eat only until their marginal utility matches the price they paid".
Please could someone explain this as why wouldn't they eat until their total utility is maximised instead? What is the significance of marginal utility equaling price?
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