What are Diminishing Marginal Returns?

In a certain period of time, with other conditions unchanged, when starting to increase consumption, the marginal utility will increase, that is, the total utility increase will be large, but after accumulating to a considerable amount of consumption, the marginal utility will gradually decrease as the consumption increases. ; If the marginal utility is still positive, it means that the total utility continues to increase, but the increase is gradually gradual; when the consumption has accumulated to saturation, and the marginal utility has decreased to 0, it means that the total utility will no longer increase cumulatively, at which time the total utility reaches the maximum; If the marginal utility decreases, it means that the total utility will gradually decrease.

Law of diminishing marginal benefits

Generally speaking, when consumers prefer something but fail to obtain it,

As the amount of variable factor inputs increases, the ratio between the amount of variable factor inputs and the amount of fixed factor changes. In the initial stage of increasing the amount of variable factor inputs, compared with fixed elements, the amount of variable factor inputs was too small. Therefore, as the amount of variable factor inputs increased, its

People have always believed that the development of the economy is to create more happiness for human beings. Helpless facts, however, appear to be completely contrary to people's wishes: whether at home or abroad, there are phenomena that the richer the life, the harder it is to be happy. This is the "law of diminishing happiness" that has emerged with the development of the economy, which is also called the "law of diminishing marginal benefits" in Western economics.