Diminishing Returns Explained
Convexity illustrates the concept of diminishing marginal benefit, where the additional satisfaction gained from consuming more of a resource decreases as quantity increases. For instance, the first few glasses of water provide high value, but as one consumes more, the utility diminishes, leading to less critical uses. This principle can also be observed with food, like donuts, where initial enjoyment fades with excess consumption.In this clip
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The Science of Everything Podcast
Episode 36: Consumer Choice Theory
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