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 behaviour by not maximizing profits.
D)management is making an assumption that other things are equal.

Question

Quizplus · Accepted Answer

According to economic theory, consumers make decisions based on the comparison of the costs and benefits of different options. In this case, the cost is the time spent waiting in line, which is the "marginal cost of waiting." The benefit is the satisfaction or utility derived from being served, which is the "marginal benefit of being served." If the marginal cost of waiting is greater than the marginal benefit of being served, then the consumer will leave the restaurant because it is no longer worth the cost (in time) to remain in the line. Therefore, option B is the correct answer.

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