Download the App!
Get 24/7 study help with the Numerade app for iOS and Android! Enter your email for an invite.
Get the answer to your homework problem.
Try Numerade free for 7 days
Like
Report
What are diminishing marginal returns?
For example, if a consumer consumes one ice-cream, he will be much satisfied so that he willdesire for second ice-cream. However, the utility and satisfaction attained by consuming one ice-cream will be more than utility attained on attaining two ice-creams. So, the consumers' utilityand satisfaction decreases by consuming more and more ice-creams in a same day.
No Related Courses
Chapter 2
Choice in a World of Scarcity
Introduction
How Markets Work
02:03
What are diminishing margi…
04:46
What is marginal benefit? …
01:01
What is productive efficie…
03:18
04:01
What are the consequences …
03:06
A cost function of the for…
02:27
What is an externality?
02:53
What is a capital gain?
02:00
What is the relationship b…
02:48
How do we calculate margin…
01:52
What is marginal cost? Why…
02:11
Return to Figure $7.7 .$ W…
01:19
What is the principle of d…
01:54
What is economic efficienc…
02:08
Diminishing marginal produ…
01:47
What is the difference bet…
02:39
What does increasing margi…
01:28
Explain the concept of mar…
00:19
03:19
Is it possible for total u…
everyone. Today we were responding to problem number 14 from chapter to the textbook, which asks what are diminishing marginal returns. So, um, diminishing marginal returns comes from the law of diminishing marginal utility, which means that as a person receives more of a good, the additional or marginal utility from each additional unit of the good declined. In other words, just for an example, the first slice of pizza you eat brings more satisfaction satisfaction to you from six. Um, so in my own words, I would say that diminishing marginal returns describes the decreased utility of additional units of a better service. So it is the tea trees utility of additional units of a good or service. So with the pizza, there's less utility or something. There's less, you know, benefit, um, of each additional slice of pizza for each additional unit pizza, which is obviously the units for heat sire slices of pizza, Um, which is why the first likes the most satisfaction. Then the second Mr in the fourth. Each of them bring some sort of satisfaction. Otherwise, I wouldn't be eating, but it becomes less and less, uh, a greater service. They're happy if you guys enjoying my video oxidation of this problem, please have the like button next to it. I hope you all have the next day. And thank you for watching.
View More Answers From This Book
Find Another Textbook
07:16
Table 3.8 shows information on the demand and supply for bicycles, where the…
06:36
How would a decrease in expected interest rates over one’s working life affe…
00:41
Individuals may not act in the rational, calculating way described by the ec…
01:51
As a general rule, is it safe to assume that a change in the price of a good…
00:32
Why is it unfair or meaningless to criticize a theory as “unrealistic?”
How does one analyze a market where both demand and supply shift?
02:14
In the labor market, what causes a movement along the demand curve? What cau…
Whether the product market or the labor market, what happens to the equilibr…
02:52
What is the relationship between quantity demanded and quantity supplied at …
How will a utility-maximizer find the choice of leisure and income that prov…
