After Paying $12 to Enter an All-You-Can-Eat Buffet, You Can

question 36

Multiple Choice

After paying $12 to enter an all-you-can-eat buffet, you can eat as much food as you desire. Which of the following statements is true?

• A) The marginal benefit of your first plate of food is larger than the marginal benefit of your third plate of food.
• B) The marginal cost of a plate of food is sunk.
• C) You should eat as much as possible to maximize your benefit.
• D) It is inefficient to eat at buffet restaurants.

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Definitions:

Limited Partner

An investor in a partnership who is not involved in day-to-day management and whose liability is limited to the amount invested.

Uniform Partnership Act

A statute that sets standard rules for the formation and operation of partnerships in the United States to ensure consistency and fairness.

Limited Liability Companies

A commercial entity that unites the individual or partnership tax pass-through with the corporation's benefit of limited liability.

Members

Owners of a limited liability company.