Question

Give an example of how the concept of diminishing marginal return represents itself in your daily life.

Answer 1

Lets take a simple example of studying and retaining in the class.

When we go to study in the classroom everyday, our retaining capacity is much better in the first class we attend, in the second one its little less and even less in the third class. After it we need some break to keep up with the lessons we are taught as we forget things.

That is diminishing marginal utility of our retaining capability, it works everywhere, similarly, if we are playing video games, we enjoy the most in the first hour and then in the subsequent hour out utility decreases i.e. net hours are not that fun. It i due to the diminishing marginal utility.