Explain the paradox of value

Reference no: EM132181645

Question: The paradox of value was a problem which preoccupied many economists during the early stages of the development of economics as a social science. The question was posed along the following lines: why is it that water, which is essential to human life, is cheap, whereas diamonds, which are inessential, have a high price? Distinguish carefully between total and marginal utility and use this distinction to explain the paradox of value.

Reference no: EM132181645

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