10.*The meal plan at university A lets students eat as much as they like for a fixed...

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10.*The meal plan at university A lets students eat as much as they like for a fixed fee of $500 per semester. The average student there eats 250 pounds of food per semester. University B charges $500 for a book of meal tickets that entitles the student to eat 250 pounds of food per semester. If the student eats more than 250 pounds, he or she pays $2 for each additional pound; if the student eats less, he or she gets a $2 per pound refund. If students are rational, at which university will average food consumption be higher? Explain briefly. LO3

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Principles Of Microeconomics

ISBN: 9780073362663

4th Edition

Authors: Robert H. Frank, Ben S. Bernanke

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