Adam Smith rejected utility as a foundation for value. He illustrates this rejection in his famous diamonds and water paradox.

Adam Smith rejected utility as a foundation for value. He illustrates this rejection in his famous diamonds and water paradox. Briefly explain how the cognitive switch from total utility to marginal utility resolves this paradox.

Adam Smith rejected utility as a foundation for value. He illustrates thisrejection in his famous diamonds and water paradox. Briefly explain howthe cognitive switch from total utility to…