WK 5 Econ
The law of marginal returns or the law of increasing costs is an economic concept that states that if one factor of production is increased while the other factors remain constant, then the output will increase only up to a certain point before the output starts to decrease (Trinh, 2018). For example, if a farmer adds laborers to help harvest corn in a field, at some point, the amount of output for each laborer will decrease because the corn field remains the same in size. The point when the output starts decreasing is the point of diminishing returns. This concept applies in all productive situations.
In terms of my study in this course, I would know that I am at a point of diminishing returns when I have already read and understand all the course topics and concepts. Most learning in the course will take place when new topics are being covered and discussed. Learning will also take place when I revise what I learnt in class and my assignments. However, after completing the course material and passing all the assignments and exams related to the course, learning begins to decrease. Even if I spend more and more time going through the course material after I have completed and passed all the exams, no more learning will take place.
The law of marginal returns also states that beyond the point of diminishing returns, the production costs will increase. In terms of my study in this course, I would know that study is enough if continuing to study adds no more value but takes away important time that I could use to study other courses or doing other important tasks.