All categories

3 years ago

Why does the marginal benefit of a diamond nearly always exceed the marginal benefit of a bottle of water?

Business

1 answer:

exis [7]3 years ago

7 0

Answer:

B)Diamonds are much more scarce than water, so the marginal benefit of diamonds are much higher

Explanation:

Water is a necessary good, but diamonds are luxury goods. At low levels of consumption, water will provide a much higher utility than diamond. Someone very thirsty will derive much more satisfaction from drinking water than from acquiring diamonds.

Marginal benefits arise from the consumption of extra units. After one has quenched their thirst, consuming more water later adds minimal benefits. On the other hand, diamonds are scarce and valuable. Having one is good, but getting an extra one will bring greater benefits as it increases wealth. Therefore, the marginal consumption of o diamonds has greater benefits than water.

You might be interested in

"what developed country is projected to have the steepest decline in population between now and 2050?"

weeeeeb [17]

The answer is Japan. It is decreasing at a record pace. The country lost 244,000 people in 2013 as births jumped and deaths increased. It faces the vision of losing a third of its population in the next 50 years, raising uncertainties about its economic prospects and labor market.

5 0

3 years ago

Consider the following financial statement information for the Hop Corporation:

EastWind [94]

Answer: Operating cycle = 84.70 days

Cash cycle = 41 days

Explanation:

Beginning inventory = $11,100

Ending Inventory = $12,100

Average inventory = ($11100 + $12100)/2 = 11600

Average Accounts receivable = (6,100 + 6,400)/2 = 6250

Average Accounts payable = (8,300 + 8,700)/2 = 8500

Day sales in inventory = Average inventory × 365 / Cost of goods sold

= 11600 × 365 / 71000 = 59.63 days

Average collection period = Average receivable × 365 / Credit sales

= 6250 × 365 /91000 = 25.07 days

Average payment period = 43.70 days

Therefore, operating cycle will be:

= Day sales in inventory + Average collection period

= 59.63 days + 25.07 days

= 84.70 days

Cash cycle = Operating cycle - Average payment period

= 84.70 - 43.70

= 41 days

7 0

3 years ago

What is capacity budgeting

irga5000 [103]

Answer:a company's ability to utilize money and workforce when producing goods or offering a service.

Explanation:

5 0

3 years ago

Explain how a country could have a deficit on its primary income but a current account surplus. 4 marks

Tatiana [17]

<h2>The following are the reasons for how a country could have a deficit on its primary income but a current account surplus:</h2>

The identified and associated sources of primary income would be different than the sources of financial activities that reflect their collection in the current account.
The expenses on developmental activities could be drawn from the primary account rather than drawing them directly from the current account.
There could be diversions of funds to manage the accounts in order to earn interest on them.

7 0

3 years ago

The claim that the high school drop-out rate has increased because more women have taken jobs in the workplace would be an examp

FinnZ [79.3K]

Claims that drop-out rate has increased because more women have taken jobs in the workplace is an example of false cause fallacy.

A false cause fallacy is said to occur in a statement because the link between the premises and conclusion does not even exist.

Here, phrase one is "high school drop-out rate has increased" and phrase two is "because more women have taken jobs in the workplace"

If we assess the two phrase, we will observe that their is no link between the statement to facilitate a valid conclusion because when woman taking jobs in workplaces can not result to increase in drop rate in high school.

Therefore, it is an example of false cause fallacy.

Read more about this here

brainly.com/question/6987057

3 0

3 years ago