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Paper Topic:

Paradox of Value

Paradox of Value

Study the Paradox of Value , aka Diamond-Water Paradox , and write a brief synopsis of what the paradox is and how marginal analysis resolves the paradox

The paradox of value is mainly an argumentative contrast regarding the two logical definition of the word value . First is the definition of value in use ' which expresses the utility of the particular object or mainly its usage and second is the value in exchange which pertains to the purchasing power that a particular object conveys

Regarding the Diamond-Water value Paradox , the statement

argues the difference in the logical aspect of the statement which is that most of the important things in life that have the most of the value in terms of usage have little or no purchasing value at all just like the value of the water . On the other hand , most of the things that have little or no use at all have great purchasing value such as the diamonds

This logical dilemma can be solved by considering the aspect of the degree of utility or the final degree of utility thus , the value of a particular thing can be measured and weigh through considering its final degree of utility and importance after it passes through the stages of its usage and exhausting its degree of value

Explain the inverse short run relationship between productivity and cost at the margin , on average , and in The short run relationship between productivity and cost at the margin on average , and in concerning the values of the other factor as also explicitly represented by graphing its values . At the start of the operation , it is a fact that the value of production is zero as so are the values of the average costs and the average cost tend to decrease while the production increase while the value of the the increase in production . This phenomenon is because the values of the average cost at the margin tend to be dependent on the fixed costs of production thus it tend to decrease as the expenses at the first run of production is again utilized at the next process delimiting another possible cost at the second production . On the other hand , the cost tends to increase in the same proportion as to the production rate because it includes the constant cost at every stage of production and it includes the variable cost in every production

The average cost rely on the economic principle that no investment at the production process is only used once thus the expense is still applicable to the next production cycle until the end of the process Oppositely , the of production there is an equal commensurable value of expense or what is simply called the cost of production incurred by the manufacturing entity


McConnell , Campbell R Brue , Stanley L (2005 . Economics : Principles Problems , and Policies . 16th Edition . McGraw-Hill Companies . HYPERLINK "http /highered .mcgraw-hill .com /sites /student_view0 /chapter2 1 /origin_of_the_idea .html http /highered .mcgraw-hill .com /sites /student_view0 /chapter21 /origin_of_the_idea .html...

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