Author Question: With respect to water and diamonds, water A) has a higher marginal utility than diamonds. B) has ... (Read 193 times)

oliviahorn72 · **on:** Jun 29, 2018

With respect to water and diamonds, water

A) has a higher marginal utility than diamonds.
B) has a lower marginal utility than diamonds.
C) is cheaper than diamonds because it has a lower total utility.
D) is cheaper than diamonds because it has a higher total utility.

Question 2

The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, at the equilibrium level of output,

A) resource allocation is efficient.
B) resource allocation is inefficient.
C) too few tons of fertilizer are produced.
D) consumers must pay too high a price for fertilizer.