My “Aha-Moment” of Diminishing Return

When Economics (Science) Amplify My Belief in Spiritual Concept

For people who gain an economics background, marginal utilities and diminishing return concept is not an “alien” word. In fact it is a common words. For us (economics scholar), understanding and intellectualizing those two notions help us shaping a formula to maximizing welfare or benefit in any economic activities. For me, it gives a source of validation to amplify my belief regarding an altruism act and the choice to not to choose greediness.

A Little Glance of Knowledge

Source :

So what are those words actually? Marginal utilities are the additional satisfaction that one person get after adding up one more product. For example, the satisfaction to consume one bar of chocolate is equal to 2 ❤ (satisfaction) for Miss “A”, if we she consume more and then her satisfaction will increase until it hit a certain point. Assume that, she consume ten bars of chocolate then the satisfaction will diminish. Diminishing return, the sweet soothing taste of chocolate won’t give her any more satisfaction, it is diminishing.

My Take-Away

In the case of Miss A, she has limit on less 10 bars of chocolate more than that will make her hate chocolate, it will disgust her. That reasoning of economics is not only help in my economics class but also on real life. We all know about the wisdom to speak about greediness, that we need to be full aware about our consumption, that we do not need that much.

That virtuous study about ethics and live in altruism sometimes makes people roles their eyes as if it’s some of “Whoo whoo” thing, but it is proven and justified by one of social science, economics. Philosopher said, it takes courage to have a step back reasoning about things that happen, because it challenges someone else’s way of thinking. In the case of diminishing return, even businessman oftentimes cast this disciplines away. My hypothesis about that? This kind of people will take advantage about the situation, while they (maybe I used to be one of them) still have a chance until the course of science take it all away.

What I still don’t understand is, why they’re reluctant to adopt it when the fact and science is laid upon them.

Thank you for reading, I hope you get insight from this



Should We Blame the Market ? or Admit that we’re just being selfish-ignorant


Market play a major role in allocating resources. How? By making people (you and me) to make a decision about what to buy in order to fulfill our needs. Knowing this concept combine with the generosity of digital-tech that create abundance of information, we ought to be able to make a wiser, smarter decision in deciding what stuff do we consume and what merchant.

That consumption behavior will be closely relate to a supply and demand concept. And that will affecting the future growth, normally it will be :

  1. Consumption that leads to high growth opportunity
  2. Consumption that leads to low growth opportunity

And the second one is bothering me. Without looking a statistical data, sometimes we feel a shortage of fundamental aspect of well-being, yet something that less fundamental (on in the other hand) is exploded. It’s everywhere and it’s one click-away from us. Why? Now it’s easy to make easy consumption goods for business, they supply us with the “Sweet Junk” and we consume, we allow this to happen.

The irony is by the fact that we’re living in an era that is the most generous than the other, with one-click away to create a better choice that won’t cost a social problem. we’re still facing the ignorant and selfishness issue.

Well the simple possible reason is it’s easy for the firm to make easy for us to consume and us (the consumer) are lazy enough to demand something better, something that benefiting not only our self, but also the society among us. Again, when it comes to consumer and producer behavior, we’re dealing with an allocation of resources. Choosing to let the supply curve filled with the “Sweet Junk” will make us having a shortage for a fundamental goods and services in the future.

It felt nice at the beginning, but with the concept of opportunity cost we are in a state of losing.We pay the price (a high cost by the way) by letting this consumption behavior to get growing and losing a chance to have a better well-being and equity for us and also for others.