Question

Why are newspaper publishers prepared to use vending machines that allow customers to pay for one newspaper and remove​ several, whereas candy and​ soft-drink producers use vending machines that allow customers to remove only the single product that is​ purchased?

a) The government program against obesity forbids selling several units of candy or soft drink at a time.

B.People who buy newspapers are considered to be more honest than people who like candies and soft drinks.

C.The marginal cost of producing an extra unit of newspaper is very close to​ zero, so that publishers​ don't take into account losses of several units of newspaper.

D. Unlike candies and soft​ drinks, the marginal value of an extra unit of newspaper is very close to​ zero; hence most people will take only one newspaper.

Answer 1

C.The marginal cost of producing an extra unit of newspaper is very close to​ zero, so that publishers​ don't take into account losses of several units of newspaper.

The answer lies in the economic principles of marginal costs and perceived value; newspapers are low-cost items with marginal losses considered negligible, and they have a marginal value close to zero, prompting most customers to take just one.

Step-by-step explanation:

Why are newspaper publishers prepared to use vending machines that allow customers to pay for one newspaper and remove several, whereas candy and soft-drink producers use vending machines that only dispense the purchased item? The most accurate answer is C, stating that the marginal cost of producing an extra newspaper is very close to zero, making the loss of several newspapers insignificant. On the other hand, D suggests that since newspapers, unlike candies and soft drinks, have a marginal value close to zero, most people will only take one. This is an economic theory where the perceived value and cost affect consumption and customer honesty is presumed.