Resolving Adam Smith's Diamond-Water Puzzle Involves

question 145

Multiple Choice

Resolving Adam Smith's diamond-water puzzle involves

• A)realizing that price is not directly related to total utility.
• B)knowing that at optimal purchase, price will tend to equal marginal utility.
• C)knowing that, as increasing quantities of a good are consumed, marginal utility diminishes and, conversely, consuming a small quantity of a good produces high marginal utility.
• D)All of the responses are correct.

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Definitions:

Ovary

The female reproductive organ in plants and animals where eggs or ovules develop and hormones are produced.

Vulva

The external female genital organs, including the labia majora, labia minora, clitoris, and the openings of the urethra and vagina.

Vagina

The muscular tube leading from the external genitals to the cervix of the uterus in females, part of the female reproductive system.

Fallopian Tube

Part of the female reproductive system, a pair of tubes leading from the ovaries to the uterus, responsible for transporting eggs and the site of fertilization.