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One way to promote a new business is to offer free items. If you were to open a new restaurant and offer free food, you
One way to promote a new business is to offer free items. If you were to open a new restaurant and offer free food, you likely would have a line out the door. How would an economist understand the behavior of those standing in line?
A Those waiting in line believe that the marginal benefit of waiting in line is zero.
B Those waiting in line place a high value on the use of their time.
C Those waiting in line place a low value on the use of their time.
D Those waiting in line believe that the marginal cost of waiting in line exceeds the marginal benefit of waiting in line.
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