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All-You-Can-Eat Restaurants Charge a Fixed Price That Permits Unlimited Access

Question 5

Multiple Choice

All-you-can-eat restaurants charge a fixed price that permits unlimited access to prepared food.Suppose food consumption is on the horizontal axis and all other goods on the vertical axis.If the restaurant charges $10 per meal while the price of all other goods is $20,restaurant patrons will consume to a point on their indifference curve where their marginal rate of substitution of food for all other goods is equal to _____.


A) 2
B) 1/2
C) 10
D) 0

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