According to economics, the law of diminishing returns usually appears on a topic that deals with costs. According to the law of diminishing returns, additional workers in a firm, or variable input added in into the production process would result in a fall of the quantity produced in the short run or at least a single factor of production is held constant (Mankiw, pp. 158 - 165). The law of diminishing returns provides that each additional unit of an input used in the production results in an increase in production by smaller and smaller amounts.
As an economics student, I have found this principle applicable in my studies. The law of diminishing returns applies to my studies especially when I continue to study for several hours hoping to understand more and more from the lectures and books to the extent of avoiding break times and taking no rests (Hilman, pp. 233-235). The law applies when the amount of knowledge that I absorb as I read more diminishes slowly. At the beginning of my studies, I am usually fresh and the absorption rate is high. In this case, time represents the variable cost and that the fixed cost is the level of stress I apply to my mind during my study. Considering that the amount of stress in held constant (fixed), the more time I add to my studies would result into the law of diminishing demands.
In considering how much study is enough, the time that I spend in my studies (variable costs), should be moderate in order to allow the brain sufficient time to relax and rest. I consider studying with breaks in between in order to refresh the brain.
Works Cited:
Mankiw Gregory. Principles of Microeconomics: Markets, Maximizers, and Efficiency. Stamford, Connecticut: Cengage Learning, 2002. Print.
Hilman, Hermann1. "The Law of Diminishing Returns. Part one. The Law of Diminishing Increments (book)." Social Forces (University of North Carolina Press) 4.1 (1925): 233-235. Education Source. Web. 5 Aug. 2013.
