"Essential" Water Is Cheaper Than "Nonessential" Diamonds Because

question 54

Multiple Choice

"Essential" water is cheaper than "nonessential" diamonds because

• A) new industrial uses for diamonds have been discovered.
• B) the supply of water is great relative to demand and the supply of diamonds is small relative to demand.
• C) although the total utility of diamonds is greater, their marginal utility is small.
• D) the supply of diamonds is great relative to demand and the supply of water is small relative to demand.

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Definitions:

Refined Sugar

Sugar that has undergone processing to remove impurities and is typically found in a granulated or powdered form.

Grinding Machine Time

The amount of time a machine spends in operation to grind materials into smaller pieces or powder in manufacturing processes.

Direct Labor

The labor costs directly attributable to the production of goods or services, excluding indirect labor expenses.

Production Facility

A location, such as a factory or workshop, where goods are manufactured or assembled.