Related to the paradox of value,which of the following statements is correct?
A) The marginal utility of water is enormous but the total utility is small.
B) We consume so much water so its marginal utility is enormous.
C) The marginal utility of water is small but the total utility is enormous.
D) The consumer surplus from water is small.
E) The total utility of water is equal to the marginal utility of water.

Question

Quizplus · Accepted Answer

The paradox of value occurs when a good with a low market value, such as diamonds, has a high marginal utility, while a good with a high market value, such as water, has a low marginal utility. Therefore, option C is correct since water may have a small marginal utility, but its total utility is enormous due to the fact that we consume so much of it.

Related to the Paradox of Value,which of the Following Statements