LAW OF DIMINISHING MARGINAL UTILITY: The law of diminishing marginal utility describes a familiar and fundamental tendency of humanbehavior. The law of diminishing marginal utility states that: “As a consumer consumes more and more units of a specific commodity‚ the utility from the successiveunits goes on diminishing”. Mr. H. Gossen‚ a German economist‚ was first to explain this law in 1854. Alfred Marshal later onrestated this law in the following words: “The additional benefit which a person
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History Repeats Itself History repeats itself. This concept applies not only within the realm of a singular nation’s history but throughout and between nations. That is to say‚ that what one nation endures‚ throughout its economic and political history‚ may be compared to and be strikingly similar to that of many other nations. As we analyze social change thought the world we have noticed a cyclical pattern of histories‚ both economic and political‚ in the countries of Spain‚ Holland‚ Britain
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Distinguish between diminishing returns and economies of scale (15 marks) In Business Economics‚ the short run is defined as the concept that within a certain period of time‚ in the future‚ at least one input is fixed while others are variable and the long run is defined as a period of time in which all factors of production and costs are variable. The law of diminishing returns is a short run concept‚ which states that increasing successive units of a variable factor to a fixed factor
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Law of Diminishing Marginal Utility’ A law of economics stating that as a person increases consumption of a product - while keeping consumption of other products constant - there is a decline in the marginal utility that person derives from consuming each additional unit of that product. EXPLANATION This is the premise on which buffet-style restaurants operate. They entice you with "all you can eat‚" all the while knowing each additional plate of food provides less utility than the one before
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Why has there been a growth in gaming? The gaming industry has been growing massively over the last 20 years. Last year the gaming industry was worth £4.65billion‚ a rise in 2.7% from the previous year. These games are used for entertainment value and can be played anywhere with internet access. The gaming industry has even overtaken the music industry. This piece will describe exactly why there’s been a growth in gaming‚ including: free games‚ decline in other pastimes‚ Easy to play for generations
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that a good or service meets. For example the initial cup of coffee in the morning meets a large need and provides a large amount of satisfaction (utility). Another example is go under water and hold your breath‚ keep holding it until you think you will pass out. Then come up out of the water‚ that first breath is wonderful -- tremendous utility. That is utility - the meeting of a need or being satisfied. Now Marginal Utility is the change in utility from one more good or service being consumed
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Law of Diminishing Returns The Law of Diminishing Returns says that when some inputs are fixed in capacity in the short run‚ increasing the variable input working with the fixed inputs would first lead to increasing additional output per additional unit of variable input‚ but eventually decreasing additional output per additional unit of variable input after the optimal capacity of the fixed input has been exceeded. Let’s look at a simple short-run production process where there is a fixed input
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Demands of the question 10 marks (paper 2) 20 minutes on it Explain the law of diminishing returns using average and marginal product curves Definition Law of diminishing returns refer to how the marginal production of a factor of production starts to progressively decrease as the factor is increased‚ in contrast to the increase that would otherwise be normally expected. Triple A Law of diminishing returns – as more and more of a variable factor is added to a fixed factor‚ output will
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ASSIGNMENT QUESTION 2 Explain the origin and the concept of ‘Neighbour Principle’. Illustrate with decided cases the application of this principle. Above all‚ I want to explain the ‘Neighbour Principle’’. Lord Atkin stated his famous neighbour Principle as was that ’You must take reasonable care to avoid acts or omissions which you can reasonably foresee would be likely to injure your neighbour `.This is sometimes known as the neighbour principle. By `neighbour`‚ Lord Atkin did not
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THE LAWS OF RETURN TO SCALE The laws of return to scale explain the behavior of output in response to a proportional and simultaneous change in input. Increase in inputs proportionately and simultaneously is in fact expansion of the scale of production. Statement: “As a firm in the long run increases the quantities of all factors employed‚ other things being equal‚ the output may rise initially at a more rapid rate than the rise of increase in inputs‚ then output may increase in the same proportion
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