Part #1

Respond to the following statement:

Using utility theory, explain how some restaurants are able to maintain an all-you-can-eat policy and still remain profitable.

Is this possible? if use content outside sources to explain and support your answer. Remember to cite your outside sources.

Part #2

1. The table below shows the Total Utility Mary enjoys from the combined consumption of Pens, Crayola, and Paper. Mary's budget for these three products is $42.00. The prices of Pens, Crayola, and Paper are $1, $3, and $8. MU- MU- MU- TU- MU- Pens/Price- TU- MU- Crayola/Price- TU- MU- Paper/Price- Qty Pens Pens Pens Crayola Crayola Crayola Paper Paper Paper 0 0 0 0 1 7 15 20 2 13 27 38 3 18 36 54 4 22 42 68 5 25 45 80 6 27 45 90 7 28 42 98 8 28 36 104 9 27 27 108 a. Please fill in the missing cells in the table. b. Compute the utility-maximizing bundle of Pens, Crayola, and Paper? C. What is Mary's overall maximizing total utility