The meal plan at university A lets students eat as much as they like for a fixed
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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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Related Book For
Principles Of Macroeconomics
ISBN: 9780415568685
2nd Brief Edition
Authors: Robert Frank, Ben Bernanke
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