Comprehensive guide to stock market and trading terminology
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Law of Diminishing Marginal Returns
The Law of Diminishing Marginal Returns states that as you continue to add units of a variable input (like labour) to fixed inputs (like land or machinery), the additional output (or marginal return) produced from each unit of the variable input will eventually decrease.
Law of Diminishing Marginal Utility
The Law of Diminishing Marginal Utility is a principle rooted in utility theory that explains how consumer behaviour is shaped by the satisfaction derived from consuming additional units of a good or service.
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