The divergence between marginal and total utility may be described by:
A) The utility paradox
B) The paradox of value
C) Utility divergence
D) Value divergence

Question

Quizplus · Accepted Answer

The paradox of value, also known as the diamond-water paradox, describes the divergence between the total utility, which is high for water because it is essential for life, and the marginal utility, which is low because water is abundant, compared to diamonds, which have high marginal utility and price due to their rarity but low total utility in terms of survival or necessity.

The Divergence Between Marginal and Total Utility May Be Described