Question

    Diamonds are priced higher than water because: 

    A consumers do not buy them at lower prices. Correct Answer Incorrect Answer
    B they are sold by selected firms with monopolistic powers. Correct Answer Incorrect Answer
    C their marginal utility to buyers is higher than that of water Correct Answer Incorrect Answer
    D their total utility to buyers is higher than that of water Correct Answer Incorrect Answer

    Solution

    The correct answer is C

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