What is mean by dimnishing marginal utility and dimnishing marginal returns ?

Hi

As per your question The law of diminishing marginal returns may be a theory in economics that predicts

that after some optimal level of capacity is reached, adding a further factor of production will actually

end in smaller increases in output. for instance , a factory employs workers to manufacture its products,

and, at some point, the corporate operates at an optimal level. With other production factors constant,

adding additional workers beyond this optimal level will end in less efficient operations.

The law of diminishing returns is said to the concept of diminishing utility and are often contrasted with

economies of scale.

KEY TAKEAWAYS

The law of diminishing marginal returns states that adding a further factor of production leads to smaller

increases in output.

After some optimal level of capacity utilization, the addition of any larger amounts of an element of

production will inevitably yields decreased per-unit incremental returns, the law says.

Also referred to as the law of diminishing returns, this principle is closely associated with the concepts of

diminishing marginal productivity,

Diminishing utility:

The Law Of Diminishing utility states that each one else equal as consumption increases the utility

derived from each additional unit declines. utility springs because the change in utility as a further unit is

consumed. Utility is an economic term wont to represent satisfaction or happiness. utility is that the

incremental increase in utility that results from consumption of 1 additional unit.

Please follow up with the link to get more information:

https://www.investopedia.com/terms/l/lawofdiminishingutility.asp

https://www.investopedia.com/terms/l/lawofdiminishingmarginalreturn.asp

Hope helpful.