what economic concept explains why news vending machines allow a consumer access to entire inventory of newspapers, yet soft drink vending machines dispense only one drink at time?
The economic concept that explains why news vending machines allow a consumer access to the entire inventory of newspapers, while soft drink vending machines dispense only one drink at a time, is known as marginal cost and marginal benefit.
To understand this concept, we need to consider the costs and benefits associated with providing multiple options in vending machines. In the case of news vending machines, the marginal cost of offering multiple newspapers is relatively low. Once the machine is filled with various newspapers, it can allow consumers to choose from the entire inventory without incurring any additional costs. Additionally, the marginal benefit for customers is high because they have more options and can choose the newspaper that best suits their preferences.
On the other hand, for soft drink vending machines, the marginal cost of offering multiple drink options is higher. Each drink option requires a separate compartment within the machine, which increases the manufacturing and maintenance costs. As a result, to keep costs down, vendors often choose to offer only one drink option and refill the machine with that specific beverage. This reduces the overall costs but also limits the consumer's choice.
In summary, the economic concept of marginal cost and marginal benefit explains why news vending machines can offer a wider selection of newspapers while soft drink vending machines typically offer only one drink at a time.