The Theory of Diminishing Returns

Curriculum support20 mins£2

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Key takeaways
Understand that consumers are motivated by utility.
Understand what marginal utility is.
Understand that a rational consumer will only consume a good as long as it provides the consumer with utility.
Chris CurryHost: I have taught Economics for the last 27 years, since completing my PGCSE in Business Education at Sheffield Hallam University. I have been a heard of department for the last 20 years and have worked as an examiner for AQA.

Do you think consumers still consume a good when it doesn't provide them with utility? Watch this class to find out! In this lesson students will learn how consumers gain utility from consuming goods but as they consume more the utility gain from each extra unit consumed will fall and eventually turn negative. By the end of the lesson students will understand what marginal utility is and how consumers are motivated by utility. This class is great for students in Years 12 and 13 who want an extra push to feel confident on the topic.


Related Classes: AS Economics: The Supply CurveAS Economics: The Demand CurveAS Economics: Bringing the Demand and Supply Curve TogetherCost, Revenue and Profit

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Suitable for:

This class is suitable for students in Years 12 and 13.

Class requirements:
You will need a laptop or device with internet connection to watch the class, as well as a pen and notepad for taking notes.
What to expect:

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