Diamonds, which are unnecessary, command very high prices, while water, which is essential to life, has a very low price. W
hich of the following statements best explains the diamond-water paradox? A. The price of diamonds is artificially inflated by supply conditions, so consumers have to pay whatever the price is. B. The total utility from diamonds is much higher than the total utility obtained from water. C. Consumers do not correctly understand the utility received from water compared to the utility received from diamonds. D. Prices depend on marginal utility, not total utility, and the marginal utility of water is low because much is consumed.
D. Prices depend on marginal utility, not total utility, and the marginal utility of water is low because much is consumed.
Explanation:
Marginal utility is the benefit gained from consuming one additional unit of a particular good or service. Since water is essential, it is consumed very commonly, many times per day. On the other hand, a product such as pizza is consumed once in a while. After the first slice, there is satisfaction and a yearn to consume another, and then a third slice after. This shows that the benefit or value from the product is high. The same case happens with diamonds except since they are much less often consumed than pizza, the marginal utility is much higher and hence the high price.
compares the efficiency and effectiveness of your business processes against strict standards.
Explanation:
Benchmarking is a process of measuring the performance of a company’s products, services, or processes against those of another business considered to be the best in the industry, aka “best in class.” The point of benchmarking is to identify internal opportunities for improvement.
<span>Productivity is an average measure of the efficiency of production. It can be expressed as the ratio of output to inputs used in the production process, i.e. output per unit of input. So you answer is Productivity. (Hope I helped :C
