Question

Candy and soda vending machines generally are locked, only allow the purchase of a specific product; a specific limit on the number or items, and have numerous anti-theft devices. Yet newspaper vending machines generally require some coins, lift up a door and -in the Theory- take as many newspapers as you want. How is this explained by disminishing marginal utility?

Answer 1

The additional utility from buying an additional newspaper is literally zero and this indicates that there are mostly one time users. This is true because once you consume (read) the entire newspaper you will not buy the next.

In contrast, Candy and Soda have diminishing marginal utility which goes on falling but remains positive. Hence a definite value is placed on them in terms of price and this is the reason these vending machines are locked, only allow the purchase of a specific product; a specific limit .