Homework: The Law of Diminishing Marginal Utility
Prior to beginning work on this discussion, read Farah Mohammed's article, Why Are Diamonds More Expensive Than Water? , as well as Chapter 5 in your textbook, especially Sections 5.1 and 5.3, and respond to the following:
i. Describe the relationship between total utility and marginal utility.
ii. Explain if marginal utility can be negative.
iii. Examine the diamond-water paradox. Why are diamonds more expensive than water?
iv. Evaluate the law of diminishing marginal utility.
v. Identify some items, explaining your reasoning, that do not follow the law of diminishing marginal utility.
vi. Evaluate how the law of diminishing marginal utility can explain the diamond-water paradox.
Format your homework according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) 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.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.