For this exercise, you will write a short research paper of 1-2 pages. Please respond to the following prompt.
Research how the Law of Diminishing Marginal Utility is used to determine prices for an all-you-can-eat buffet restaurant. Identify an establishment of your choosing and research its pricing and any other related information. Consider the following questions:
1.What variables are used to help determine the price level that would be the most effective for a new company to enter the market?
2.If the law of Diminishing Marginal utility is not considered, what could be the result of pricing decisions?
After you have developed a good understanding of this concept, compare it with an amusement park atmosphere, such as Disneyland or Universal Studios. Explain the similarities and differences that you discover between these two. For this part of the exercise, concentrate on the non-economical aspects as they correspond with the Law of Diminishing Marginal Utility.