Why are newspapers sold in vending machines that allow consumers to take more than they pay for, but items like soda and candy are sold in vending machines that only allow consumers to take one at a time?

Question

Collin Bullock

Business

17 May, 15:25

Why are newspapers sold in vending machines that allow consumers to take more than they pay for, but items like soda and candy are sold in vending machines that only allow consumers to take one at a time?

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Answers (1)

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Daniel · Answer 1

The marginal utility for newspaper is zero on the other hand the marginal utility for soda and candy are positive

Explanation:

The newspapers that are sold in vending machines have zero marginal utility because all the news which are given in the newspaper are identical and they are same they do not have multi purpose uses and hence they allow the consumers to take more than what they pay

The soda vending and the candy vending machines have positive marginal utility they have different brands of sodas and candies and hence they allow the consumers to take only one at a time