Featured Answer

Asked on

Using economic theory?

Using economic theory.

Suppose you had the choice of purchasing identically priced lunches from a vending machine or at a cafeteria. Which would you choose? Why?

Answers (3)

hb2ohscgaa profile image
xat3xhg0aa profile image

define "economic theory".

There are a multitude of different theories and schools of thought regarding economic decision making. there isn't one "economic theory".

If we're given the assumption that the lunches are equally priced, we still need to know who's making that decision, and what they value. If their only value is price, then there is no difference at all, assuming everything else is equal.

But the real world doesn't work that way. There are competing values....is the food the same quality? Is the risk of contamination the same? Does supporting the cafeteria support more jobs? Is there a difference in choice that may be changed if you support one over the other?

You need to supply more information. Given only price, there is no difference, but in the real world there is always more than one variable different, and different consumers choose differently based on the values that motiuvate their purchasing decisions.

fbaqizm6aa profile image

Vending machine. No tax in all states.

If tax is not considered, cafe b/c circulation of money is increased because u are partially paying for cafeteria persons salary and has more tiers b4 money hits corporate bozos.