Final answer:
The Correct option is 1). You will stop eating when your marginal utility derived from another serving of ribs is zero, according to the law of diminishing marginal utility. This is because additional satisfaction decreases with each serving after a set price has been paid, which guides rational consumer behavior.
Step-by-step explanation:
The scenario described in the question involves the economic principle of marginal utility under the broad topic of consumer behavior. A local restaurant offers an 'all you can eat' ribs special for a set price, and according to the law of diminishing marginal utility, you will stop eating when the utility or satisfaction you get from consuming one more serving of ribs equals zero. This concept suggests that with each additional serving of ribs consumed, the satisfaction derived from eating more decreases until it no longer provides any additional enjoyment or utility. This question does not exactly align with the given options but is most closely related to the first option: when the marginal utility derived from eating another serving is zero.
In terms of opportunity cost, a rational consumer will continue to consume as long as the marginal utility from an additional serving exceeds the opportunity cost of that serving, which in this case is nothing as the servings are unlimited after the initial fixed price. Therefore, a decision to stop eating would occur when the marginal utility falls to zero, as no other opportunity costs apply for additional servings. It is not correct to stop when the total utility equals the initial payment or when the marginal utility is equal to the initial payment, as total utility isn't measured in currency and marginal utility for additional servings doesn't cost extra once the fixed price has been paid.