The law of diminishing marginal utility is discussed

In short, the law of diminishing marginal utility means that in the production process, the utility generated before the number of main means of production increases to a certain number. In other words, for each unit of means of production, the utility of output also increases by one unit. However, with the continuous increase of means of production, the utility produced does not always show an increasing trend, Especially when the means of production increase to a certain quantity / start, the production utility begins to decline, which is the phenomenon of diminishing utility. The so-called marginal utility refers to the unit production utility that can be obtained for each unit of means of production
For example, when your company gives you a bonus as a means of encouragement, your original salary is, for example, 1000 yuan / month. When the amount of bonus per month starts from 100 yuan and increases at the rate of 100 yuan each time, maybe every 100 yuan increase will play a certain role in your encouragement, but when the reward reaches 1000 yuan per month, the additional 100 yuan will play a role, Obviously, it is already weak, especially when it comes to 2000 yuan (salary 1000 yuan, plus bonus 2000 yuan), if you are asked to work overtime and say that the bonus is increased by 100 yuan, you may simply give up the reward and choose to take a vacation or stay with your family. At this time, the increased 100 yuan has become a diminishing effect on you

Examples are given to illustrate the law of diminishing marginal utility

The law of diminishing marginal utility is a very significant law derived from economics, that is, when a positive agent increases, it will get a certain effect, but when the agent continues to increase, the effect will increase less and less. Finally, no matter how the agent increases, the effect will not increase, which is "diminishing"
Take a simple example. When you are very, very hungry, you will feel very happy when you eat the first steamed bread. When you eat the second steamed bread, you will feel less happy than when you eat the first steamed bread. When you eat the third, fourth and fifth steamed bread, your happiness will grow less and less. I promise, when you eat the tenth steamed bread, it will only be more painful
This is the simplest example of the law of diminishing marginal utility

It is known that the utility function is u (x1, x2) = (lnx1 + 2lnx2) / 3, P1 and P2 are the price and M is the income (1) Utility maximization condition (2) Find the demand function of X1 and x2 (3) When P1 = P2 = 1, draw Engel curves of X1 and X2, and the vertical axis is income

According to the title, the antecedent constraint is: m-x1p1-x2p2 = 0
Let L = (lnx1 + 2lnx2) / 3+ λ （m-x1p1-x2p2）
The condition of utility maximization is: ∂ L / ∂ X1 = o
∂L/∂X2=0
∂L/∂ λ= 0
The demand function can be obtained by solving the above three equations: X1 = 2m / (3P1)
X2=m/(3p2)
Bring P1 = P2 = 1 into the demand function of X1 and X2, and draw the function curve of m about X1 and x2

Economic problems: suppose the demand function is q = MP ^ - N, where M represents income, P represents commodity price, and n (n > 0) is a constant. Find the price point elasticity of demand I'm a rookie. Don't be too complicated,

Let the demand function be q = f (P), then point elasticity = DLN (q) / DLN (P) = let DQ / DP * P / Q. is your demand function q = MP ^ (- n)? Therefore, take logarithms on both sides, ln (q) = ln (m) - NLN (P), so point elasticity = DLN (q) / DLN (P) = - N, which is the so-called constant point elastic demand function. All demand functions with exponential function about price are constant point elastic demand functions. For income point elasticity, the same, because DLN (q) / DLN (m) = 1, the income demand point elasticity is 1. Note the above operation of D, It's all about finding partial derivatives

Let the demand function q = m divided by P to the nth power, P is the price, m and N are constants, and find the point price elasticity of demand

Just use the formula directly
E = DQ / DP * P / Q = m * (- n) * 1 / (n + 1 power of P) * P / Q
=(- Mn) / (n-th power of QP)

It is known that the market demand function of a commodity is = 20-p and the market supply function is q = 4p-20. Now the government levies a tax of 2 yuan for each commodity. After trying to levy the tax

P is the commodity quantity cost X
F=20-P
Q=4P-20
Profit w = (20-p) x - (4p-20) x - (20-p) * 2
=40X-5PX+2P-40

The law of diminishing marginal utility is discussed