Today's lesson is on the Law of Diminishing Returns. The standard definition of the law from any Econ 101 Text is...
“When increasing amounts of one factor of production are employed in production along with a fixed amount of some other production factor, after some point, the resulting increases in output of product become smaller and smaller.”
As an Economic student I always liked making it fun, so I often come up with real life examples that I could relate to. The easy way to remember the Law Of Diminishing returns when you are really drunk is this. Imagine a dance floor, which is of a fixed size say fifteen feet by fifteen feet. The dance floor is made of stone and no drinks are allowed onto it, dancing out with the specified dance area is strictly prohibited. Now dance floors have one variable factor that can be increased and decreased and that is dancers. In this case we will assume that the entire dance floor is for women only.
One woman on the dance floor shaking her ass is enjoyable to watch. Lets say her short skirt and pink boob tube under the flashing lights of the rig above give you and utility (or enjoyment factor) of three. Three what is entirely up to you, just don’t get carried away it’s just a dance.
Now two women ass shaking is more enjoyable as they do like to bump and grind with each other in very seductive ways. Watching this kind of dancing you can let your mind wander a bit further…perhaps there really good friends. Perhaps they’re having a sleep over tonight, perhaps after a glass of wine in there top floor flat over looking the Clyde they decided its time to explore those feelings they have had for so long. All this in mind we would receive on average an enjoyment value of nine. Greater in value than simply adding another single woman to the floor dancing by herself.
Now add eight more, tits and ass shaking all over the place, this sight would make most porn stars turn white. Perhaps they even do a little choreographed set, pairing up and performing a supposedly spontaneous jive number. This is when the enjoyment level begins to peak everyone watching is now as happy as they are going to get.
However, after this point every extra woman on that dance floor doesn’t increase your enjoyment level the same as the last. Movement gets restricted, perhaps the girls are quite bitchy and don’t want to gyrate as much with there rivals so close to them. By the time you reach fifteen women we can already see a drop in enjoyment as we stand back corona in hand watching the carnage unfold in front of us, swinging elbows and dirty looks all over the place. Add enough women and eventfully your enjoyment level will go into negative as the floor full of hot girls just isn’t shaking it no more it’s more a pen of young ladies slightly hoping up and down.
As we can see from the graph the dance floor cannot sustain an increase in enjoyment when we increase the variable factor in this example.
Here end’th the lesson
Mr Bison
