The Law of Diminishing Marginal Utility

Prior to beginning work on this discussion, read Farah Mohammed’s article, Why Are Diamonds More Expensive Than Water? (Links to an external site.), as well as Chapter 5 in your textbook, especially Sections 5.1 and 5.3, and respond to the following:

Describe the relationship between total utility and marginal utility.
Explain if marginal utility can be negative.
Examine the diamond-water paradox. Why are diamonds more expensive than water?
Evaluate the law of diminishing marginal utility.
Identify some items, explaining your reasoning, that do not follow the law of diminishing marginal utility.
Evaluate how the law of diminishing marginal utility can explain the diamond-water paradox.
The Law of Diminishing Marginal Utility paper
Must use at least three scholarly, peer-reviewed, and/or other credible sources in addition to the course text
https://daily.jstor.org/diamonds-expensive-water/
Please reference the book as one of the four sources, and cite them in the works
Amacher, R., & Pate, J. (2019). Principles of microeconomics (2nd ed.). Bridgepoint Education..

SAMPLE SOLUTION

Amache and Pate (2019) defines utility as the satisfaction that individuals derive from utilizing a specific good. The utility level varies from one person to another for each unique commodity and there is no distinct measuring unit for utility because it is unique for everyone. However, sometimes scholars use a temporary unit called util as a unit of measure for utility (Farah, 2018). While measuring utility, it is challenging to compare different levels of utils since they only measure an individual’s satisfaction level and because everyone prefers different commodities, scholars do not use utils as subjective measures for individual fulfilment. Therefore, the utility function serves as a…