The diagram illustrates a persons MU curves of water and diamonds. Assume that diamonds are more expensive

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The diagram illustrates a person’s MU curves of water and diamonds. Assume that diamonds are more expensive than water. Show how the MU of diamonds will be greater than the MU of water. Show also how the TU of diamonds will be less than the TU of water.

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Economics

ISBN: 978-1292187853

10th edition

Authors: John Sloman, Jon Guest, Dean Garratt

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