Topic: Diminishing Returns? is a concept, or more precisely, an empirical finding that shows up in a variety of places in microeconomics. We first encountered it in the module on utility, and

Topic:

“Diminishing Returns” is a concept, or more precisely, an empirical finding that shows up in a variety of places in microeconomics. We first encountered it in the module on utility, and then again in this module on production and costs.

What do economists mean by “diminishing returns” to an input? What causes diminishing returns? Have you ever observed this principle at work in a job you’ve had? Describe how you’ve experienced this concept in the real world.

Directions:

1. Post your initial reply to the topic above by Thursday evening at 11:59pm.
2. Read through the other entries and reply directly to at least two classmates by Sunday evening at 11:59pm. 

Please make a substantive contribution to the discussion; short replies such as "I agree" will not earn full points. When you reply, make sure to use professional grammar and punctuation.