Homework: The Law of Diminishing Marginal Utility
Prior to beginning work on this homework, read Farah Mohammed's article, Why Are Diamonds More Expensive Than Water? And respond to the following:
o Describe the relationship between total utility and marginal utility.
o Explain if marginal utility can be negative.
o Examine the diamond-water paradox. Why are diamonds more expensive than water?
o Evaluate the law of diminishing marginal utility.
o Identify some items, explaining your reasoning, that do not follow the law of diminishing marginal utility.
o Evaluate how the law of diminishing marginal utility can explain the diamond-water paradox.
Format your homework according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.