Question

Peter, Paul, and Mary go to an all-you-can-eat buffet. The normal entrance fee is $20, but Peter gets in free because it is his birthday and they have a special. Paul uses a coupon and only pays $10. Mary is the only one to pay the full $20. They are all equally hungry and have an equally large appetite. If they are all rational decision makers, the person who should eat the most is:

Answer 1

mary

Step-by-step explanation:

A rational consumer would consume up to the point that marginal benefit equal marginal cost

Mary paid $20. this means that she places a value of $20 on the meal.

Paul paid $10. this means that he places a value of $10 on the meal

The value Mary places is 20, so she places a higher value and she would consume the most

Peter enters free and thus there is no marginal cost attached to this decision. He should consume the least