Water is cheap and diamonds are expensive because water has a ...

[fahad]

Water is cheap and diamonds are expensive because water has a ________, and diamonds have a ________.
 
  A) low total utility; high total utility
  B) low marginal utility; high marginal utility
  C) high marginal utility; low marginal utility
  D) low marginal utility and a low total utility; high marginal utility and a high total utility

Question 2

If perfectly competitive firms exit a market, the
 
  A) market supply curve shifts leftward.
  B) price of the good or service falls.
  C) profits of the remaining firms decrease.
  D) output of the industry increases.

[heinisk01]

Answer to Question 1

B

Answer to Question 2

A