What is Diminishing Marginal Returns?


1.

phenomenon in which greater input of effort, money, etc. yields smaller results. Crucial part of the idea is that if you're using x to get y results (where y is the thing you want). then additional input a will yield additional results b, but not in the same proportion as before.

On average, before, you put in x to get y, so your yield was y/x. But if you increase x by amount a, then your results will be y + b, where

(y + b)/(x + a) < y/x

and this will only get worse.

Diminishing marginal returns (DMR) is used to explain why the supply curve in economics slopes upward, i.e., increasing the quantity supplied requires an increased price of most things.

Sometimes DMR is more than offset by "economies of scale," which allows more of a thing to be supplied more cheaply than a small amount.

At first his flowers and treats swept her off her feet, but then he had to do more and more lavish things to please her. It was a classic case of diminishing marginal returns.

See economics, supply, demand, price


7

Random Words:

1. loquera is a slang word utilized to refer to controlled substances. In most instances, this word is used to refer to cocaine. Although..
1. a lesbian who takes on the characteristics of a male and would be ugly even if she was trying to be a female. "Holy shit, check ou..
1. When you take your index finger and stick it into a female's vaginal crevice. Let it sit there a moment, then pull it out, wet and ..