The diamond/water paradox helps to illustrate the concept of marginal value.

Question

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The diamond/water paradox illustrates the concept of marginal value by questioning why diamonds, which are not essential for survival, are valued more highly than water, which is essential. It highlights how the value of goods is determined not just by their overall utility but by their marginal utility, or the utility gained from consuming an additional unit of the good.

The Diamond/water Paradox Helps to Illustrate the Concept of Marginal