In the Paradox of Value Between Expensive Diamonds and Inexpensive

question 84

Multiple Choice

In the paradox of value between expensive diamonds and inexpensive water,we see that

• A) the consumer surpluses are very high for both goods.
• B) diamonds have a low consumer surplus while water has a high consumer surplus.
• C) diamonds have a high consumer surplus while water has a low consumer surplus.
• D) the consumer surpluses are very low for both goods.
• E) the consumer surpluses for the two goods cannot be compared.

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Definitions:

Material Requirements Planning

An inventory management system that determines the quantity and timing of raw materials needed for production to meet demand while minimizing stock levels.

Time And Motion Studies

The analysis of work processes to increase efficiency by reducing wasted time and motion.

Interchangeable Parts

Components that are, for practical purposes, identical. They are made to specifications that ensure they are so nearly identical that they will fit into any device of the same type.

Operations Management

The aspect of management dedicated to the design, administration, and supervision of the manufacturing process, along with the modification of business operations in the generation of products or services.