Asked by
Jordan Mcsears
on Oct 12, 2024
Verified
The water-diamond paradox is resolved once we realize that the marginal utility of the last gallon of water consumed is very ____ and the marginal utility of the last diamond carat purchased is very ___.
A) low;low
B) high;high
C) high;low
D) low;high
Marginal Utility
The additional satisfaction or utility gained by consuming one more unit of a good or service, which typically decreases with each additional unit consumed.
- Deploy the notion of utility to clarify the choices of consumers and understand market irregularities such as the water-diamond paradox.
Verified Answer
DN
Learning Objectives
- Deploy the notion of utility to clarify the choices of consumers and understand market irregularities such as the water-diamond paradox.