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 eating in that restaurant.
B) marginal cost of waiting is greater than the marginal benefit of eating in that restaurant.
C) management is exhibiting irrational behavior by not considering the marginal cost and the marginal benefit of standing in line by the consumer.
D) management is making an assumption that other things are equal.

Question

Quizplus · Accepted Answer

When consumers leave a fast-food restaurant because the lines to be served are too long, it means that the marginal cost of waiting (time and effort) to be served exceeds the marginal benefit of eating in that restaurant. In other words, they are better off going somewhere else or doing something else with their time and money. If the restaurant management wants to retain customers even during peak demand, they may need to invest in technologies, processes, or incentives that reduce waiting times and improve the customer experience.

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