Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 14 - Part V - Firms in Competitive Markets - Problems and Applications - Page 297: 2

Answer

It depends on how much you value the lobster dinner.

Work Step by Step

If you value the entire lobster at more than 80 dollars, then you should stop eating. (Since you value an entire lobster at more than 80 dollars, this is akin to valuing half of a lobster at more than 40 dollars.) If you value the entire lobster at less than 80 dollars, then you should continue eating. (You have not yet received enough value from the lobster.)
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