In well functioning financial markets, and assuming rational behavior, why would

Question

In well functioning financial markets, and assuming rational behavior, why would a vegetarian prefer $100 worth of beef to $90 worth of vegetables?

Vegetables will likely rise in value. The vegetarian could choose the beef, sell the beef, buy the vegetables, and make him or her self better off. The vegetarian thinks that beef is worth very little. Vegetables, by their very nature, are worth less than beef. $90 is worth more than $100 due to the economic principle known as diminishing marginal return. Beef will likely decline in value, while vegetables will not. $90 is worth more than $100 due to the economic principle known as diminishing marginal utility of wealth. All of the Above None of the Above

Explanation / Answer

As long as beef and vegetables are traded at market prices the vegetarians can trade 100$ of beef for 90$ of vegetables and could have 10$ as leftover.

This is as per principle of diminishing marginal utility of wealth

so the vegetarianswill buy beef , sell the beef, buy vegetables and make him or herself betteroff.

Also accepting 90$ vegetables will violate principle of positive marginal utility.

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