Discussion Post: Principles of Microeconomics
Prior to beginning work on this discussion, read Farah Mohammed's article, Why Are Diamonds More Expensive Than Water? , as well as Chapter 5 in your textbook, especially, and respond to the following:
a) Describe the relationship between total utility and marginal utility.
b) Explain if marginal utility can be negative.
c) Examine the diamond-water paradox. Why are diamonds more expensive than water?
d) Evaluate the law of diminishing marginal utility.
e) Identify some items, explaining your reasoning, that do not follow the law of diminishing marginal utility.
f) Evaluate how the law of diminishing marginal utility can explain the diamond-water paradox.
The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.