Graphs Needed for Marginal Utility and Diminishing Return

I am now going through Book Four Chapter Two. By anlysing how much barrels of corn a farmer produced in year of 2001 2002 2003 and 2004 how many hours he/she worked in the field and how much capital was invested annually you will noice the same pattern in the extra return he/she generates as in the utility of a good you purchase.

To leave a fancy impression on you I'd like to take roses for example. My fiance longs for roses as Valentine's Day gift but somehow every year I send her chrysanthemum. As she has received chrysanthemum for more than six times the utility which the sixth chrysanthemum bouquet brings about drops by 10 credits compared to the first chrysanthemum bouquet she got.

The utility for the first second third fourth and sixth chrysanthemum bouquet are respectively 11 credits 9 credits 7 credits 4.5 credits 2.5 credits and 1 credit.

So you notice a decreasing trend in the utility of the latest chrysanthemum bouquet I give to my fiance. And it's the same case with the extra return a farmer gets by putting in the extra time and capital. But it would be perfect if graphs with x-axis and y-axis are depicted in 'the Principles of Economics'. You'll get a clearer idea of what Alfred is talking about.

Suppose that I give her chrysanthemum for three decades but some day a bouquet of roses is offered. Yes she must be flying over the moon as soon as the roses are presented to her. Because that is the only rose bouquet she has ever acquired the utility of that boutique must be at least 68 credits. But if I give her roses for the second time on the Valentine's Day in the following year the utility of the second rose boutique may probably descend to 65 credits.

2021-07-17

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