The Law of Diminishing Return

I hate to break this to you all, but when your parent says “Too much of a good thing is a bad thing!”, believe it or not, they are right. Well if you take into account the evil “Law of Diminishing Return”. Here is the definition:

“Sometimes referred to as variable factor proportions, law of diminishing returns states that as equal quantities of one variable factor are increased, while other factor inputs remain constant, ceteris paribus, a point is reached beyond which the addition of one more unit of the variable factor will result in a diminishing rate of return and the marginal physical product will fall.”

English translation: There is a point where, when adding one more item (food, cloth, girlfriend/boyfriends), it decreases your “marginal” utility(happiness).

For example, you love ice creams, so you bought 3 cones of vanilla with sprinkle. It was the best ever! Then you bought a fourth one. It turns out to be not as good as the first three,but it ws okay. Then you bought a 5th one. That didn’t taste as good either. Then you bought a 6th one, that tasted even worse. Actually, it made you feel sick. That is the Law of Diminishing Return working at its best. The first 3 were good but the rest just made you feel worse because you were already full from the first three.

So, prove me wrong, what is something that will not be affected by the Law of Diminishing Return?

How about Pulogadung Industrial Estate (Kawasan Industri Pulogadung) ?

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source: http://www.theasianeconomist.com/the-law-of-diminishing-return/

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