80%
Sunday, November 01, 2009
`The Law Of Diminishing Returns

=Quoted from Wikipedia=

The law states: "...that we will get less and less extra output when we add additional doses of an input while holding other inputs fixed. In other words, the marginal product of each unit of input will decline as the amount of that input increases holding all other inputs constant."

=Unquote=

As the law states, it clearly defines that when things keeps on added while others stays constant, the satisfaction level that it will give to an individual will diminish as the additional is added in. In Layman's term, it simply means that the more you add up to a certain level, you cant be as satisfied as you will be thereafter.

If you have ever studied economics, you would have understood what the law actually means....

But somehow, somewhere.... there are still individuals out there who doesn't understand this fact.... Maybe its time they should pick up econs textbook and start reading it... To those who had studied or rather studying econs right now... I advise you to start revising your econs now...


Juz LeeN ♥ 6:11 PM