Give examples of how to calculate total revenue, total cost, variable cost, fixed cost, marginal cost,...

Give examples of how to calculate total revenue, total cost, variable cost, fixed cost, marginal cost, ATC, AFC, and AVC.

What is the water-diamond paradox?

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Expert Solution

If we talk in simple terms then the term paradox meaning the contradictory statement

So water- diamond paradox simply states that as we all know that water is more useful as compare than diamonds for survival but still diamonds are having higher price in the market

It is generally explained by the help of marginal utility theory which says that the water is necessary for life but only first few units and water presence is plentiful on earth

But if we talk about diamond then they are very scarce resource so marginal value per pound of diamond exceeds the marginal value per pound of water

Rahul Sunny answered 1 year ago

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