04 diminishing marginal returns
TRANSCRIPT
![Page 1: 04 diminishing marginal returns](https://reader035.vdocuments.site/reader035/viewer/2022070523/58ed15021a28ab101b8b45e5/html5/thumbnails/1.jpg)
Bellringer in your notesReview: Utility, Marginal
1. Draw a small chart in your notes showing your level of alertness throughout your school day on
a Wednesday. 0 being not alert and 10 being “top of your game”
1st 0-10
2nd 0-10
3rd 0-10
4th 0-10
5th 0-10
6th 0-10
Chapter 13 Costs
![Page 2: 04 diminishing marginal returns](https://reader035.vdocuments.site/reader035/viewer/2022070523/58ed15021a28ab101b8b45e5/html5/thumbnails/2.jpg)
With your partner1. How much information will you miss if you
miss 1 day of a regular school day? 2. What if you miss 2 days?3. What if you miss 8 days?
![Page 3: 04 diminishing marginal returns](https://reader035.vdocuments.site/reader035/viewer/2022070523/58ed15021a28ab101b8b45e5/html5/thumbnails/3.jpg)
“the margin”
• Additional• Ex: production, consumption, effort
![Page 4: 04 diminishing marginal returns](https://reader035.vdocuments.site/reader035/viewer/2022070523/58ed15021a28ab101b8b45e5/html5/thumbnails/4.jpg)
Two volunteers• Two Volunteers• Marginal utility
![Page 5: 04 diminishing marginal returns](https://reader035.vdocuments.site/reader035/viewer/2022070523/58ed15021a28ab101b8b45e5/html5/thumbnails/5.jpg)
Two volunteers
• Two Volunteers• Law of diminishing
marginal returns • Eventually marginal
benefits will decrease
![Page 6: 04 diminishing marginal returns](https://reader035.vdocuments.site/reader035/viewer/2022070523/58ed15021a28ab101b8b45e5/html5/thumbnails/6.jpg)
Show theoretical graph
![Page 7: 04 diminishing marginal returns](https://reader035.vdocuments.site/reader035/viewer/2022070523/58ed15021a28ab101b8b45e5/html5/thumbnails/7.jpg)
![Page 8: 04 diminishing marginal returns](https://reader035.vdocuments.site/reader035/viewer/2022070523/58ed15021a28ab101b8b45e5/html5/thumbnails/8.jpg)
Movie Clips
• How do we see Diminishing Marginal Returns in each clip
• NY Coney Island hot dog eating contest• Squidward
![Page 9: 04 diminishing marginal returns](https://reader035.vdocuments.site/reader035/viewer/2022070523/58ed15021a28ab101b8b45e5/html5/thumbnails/9.jpg)
Eventually…
![Page 10: 04 diminishing marginal returns](https://reader035.vdocuments.site/reader035/viewer/2022070523/58ed15021a28ab101b8b45e5/html5/thumbnails/10.jpg)
Application to students?
![Page 11: 04 diminishing marginal returns](https://reader035.vdocuments.site/reader035/viewer/2022070523/58ed15021a28ab101b8b45e5/html5/thumbnails/11.jpg)
Application to business?
![Page 12: 04 diminishing marginal returns](https://reader035.vdocuments.site/reader035/viewer/2022070523/58ed15021a28ab101b8b45e5/html5/thumbnails/12.jpg)
Application to government?
![Page 13: 04 diminishing marginal returns](https://reader035.vdocuments.site/reader035/viewer/2022070523/58ed15021a28ab101b8b45e5/html5/thumbnails/13.jpg)
Application to partiers
![Page 14: 04 diminishing marginal returns](https://reader035.vdocuments.site/reader035/viewer/2022070523/58ed15021a28ab101b8b45e5/html5/thumbnails/14.jpg)
Closure:Law of Diminishing Marginal Returns
• Benefit of extra input decreases from the last
• Songs• Movies• Video games• Alcohol• Being in school• Studying