In daily life, we often face various decisions. For example, we need to decide whether to purchase a product, whether to continue with a certain task, or whether to invest in a certain project. Marginal utility is a very important factor in these decisions. So, what is marginal utility? How does it affect our decisions? Let's take a closer look together.
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When we yearn for something, the more our emotions are invested, the stronger our emotional experience becomes when we first come into contact with it. However, on the second encounter, it becomes lighter, and on the third encounter, it becomes even more...
As a result, the more times we come into contact with the thing, the more indifferent our emotional experience becomes, gradually becoming dull. This effect is equally effective in economics and sociology, known as the "diminishing marginal benefit rate"in economics and the "deprivation and satisfaction proposition" in sociology, which was proposed by Hermann.
Marginal utility refers to the additional level of satisfaction that a consumer receives by increasing their consumption of one unit of goods or services over a certain period of time.
Today's sharing
The Law Of
Diminishing Marginal Effects
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The law of diminishing marginal utility refers to the law of diminishing marginal utility obtained by consumers from each continuously increasing consumption unit of a certain commodity over a certain period of time, under the condition that the consumption of other commodities remains constant.
When a person is hungry, eating the first steamed bun brings great benefits to them. In the future, as the number of steamed buns eaten by this person continues to increase, although the total utility continues to increase, the marginal utility brought to him by each steamed bun decreases. When he is completely full, the total utility of baozi reaches its maximum value, while the marginal utility decreases to zero. If he continues to eat baozi, he will feel uncomfortable, which means that the marginal utility of baozi will further decrease to a negative value, and the total utility will also begin to decline.
Domain Application
In the field of technology
For example, investing 1 yuan at the beginning can yield an output of 2 yuan. As the investment scale continues to expand, to a certain extent, when the same investment of 1 yuan is made, the output may only be 1.2 yuan, or even only 1 yuan, 0.8 yuan, 0.6 yuan... less and less.
In a sense, marginal effects break people's original thinking, which is the habitual pattern of "input-output".So, technology is not necessarily better with more, higher with better, but more importantly, its practicality and relevance in solving practical problems.
In the field of education
As the intensity of class teacher education investment increases, the effect also increases. When the investment increases to a certain amount, the educational effect no longer increases positively; If continued to strengthen, the educational effect will significantly decrease and show negative growth.
In any educational activity, the initial stage of receiving relevant information is the most effective for the educational object, then gradually decreases over time, and finally reaches a saturation point. Beyond this point, the educational object will develop a resistance mentality.
Tourism sector
Traditional travel agencies have begun to extend and expand upstream and downstream of the tourism industry chain, maximizing their "marginal effects". Private enterprises and foreign investment have begun to "encircle" scenic spots and embark on new experiments of "tourism big communities".
When making decisions, we need to consider marginal utility. For example, when considering whether to purchase a product, we need to compare the marginal utility of purchasing the product with the price paid to purchase it. If the marginal utility is greater than the price, then buying the product is worth it; If the marginal utility is less than the price, then buying the product is not worth it
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By understanding marginal utility, we can make better decisions. In daily life, we can apply the principle of marginal utility to optimize our consumption behavior and improve our quality of life.
I hope this article can help you understand the important economic concept of marginal utility. If you are interested in economics, please follow our WeChat official account, and we will provide you with more interesting and interesting economic knowledge!
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