The paradox of value
A)is that values are the same for different people.
B)is that economists can calculate marginal utility,even though utility is unmeasurable.
C)is resolved by an appeal to the law of diminishing total utility.
D)remains unresolved by economists.
E)is resolved by an appeal to the difference between marginal utility and total utility.

Question

Quizplus · Accepted Answer

The paradox of value, also known as the diamond-water paradox, is resolved by distinguishing between marginal utility and total utility. This distinction explains why items with less total utility (like diamonds) can have a higher price than items with greater total utility (like water) because the marginal utility of the former is higher due to their rarity.

The Paradox of Value