Which Economic Principle Accounts for the Fact That All-You-Can-Eat Buffet

question 427

Multiple Choice

Which economic principle accounts for the fact that all-you-can-eat buffet restaurants can be profitable?

• A) the law of demand
• B) the principle of diminishing marginal utility
• C) the principle of comparative advantage
• D) the law of supply

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Definitions:

Fair Value

What is expected as profit from selling an asset or what is required as payment to transfer a liability in a smooth market transaction on the established measurement date.

Costs To Sell

Expenses directly associated with the disposition of an asset, including legal, broker's, and advertising fees, which can reduce the profit realized on the sale.

External Evidence

Information obtained from independent sources outside an entity that can be used to support financial statement assertions.