Alarge new diamond mine has just opened and the price of diamonds has gone down. since she has studied economics, cecilia decides to buy a diamond necklace since she knows that

If the supply increases the price decreases.

Explanation:

If the supply of diamonds increases the price decreases. In fact, one of the reasons why diamonds are very expensive is because it is a scarce commodity in the world and also its extraction and production process has a high cost.

Cecilia can afford to acquire the diamond necklace by the opening of the new mine since the price has decreased and she knows that being a non-renewable resource, when the mine runs out the price of diamonds will rise again and she could sell her necklace and get a profit.

answer; /// (a) and (b) ; /// but i believe the correct answer is ; /apart from fines and jail time, driving under the influence puts the life of the driver and everyone else on the road at risk; (b)

marginal cost is a microeconomic measure that us to evaluate the extent to which the level of production of a good is sustainable in accounting, that is, to how many quantities the company plans to profit from the production of the good.

the concept of marginal cost is simple, it means the cost of producing one more item. for example, in the case of pies, the marginal cost is the cost of producing one more pie than those that have already been produced.

it is important to understand that productive activity influences marginal cost. the marginal cost of some goods can be very high, while others may be insignificant. for example, the marginal cost of producing an extra plane is very high. already the marginal cost of a water company to provide 1l more water is derisory.

in the case of pies, the cost involves the inputs, the labor and the fixed cost, which involves the fixed space of the bakery. the level of production initially has the marginal cost decreasing because there is space and manpower available. however, to produce more you have to hire more workers and buy more inputs. if physical space is limited, workers will conflict with places, inputs and their productivity will decrease, meaning there is an optimum point of production for each level of space and manpower. from this point on, the productivity of the workers will be getting smaller because of lack of space, so that the marginal cost of producing one more pie will be increasing. so, although you have not posted the chart, but if you have the answer, you can see that my explanation goes according to the marginal cost curve that will increase from the 4th pie, answer (c).