Point of diminishing returns

I read Drubin's explanation real fast and my head twisted off my shoulders and landed across the room. I went over, picked it up, put it back where it once was and came back to re-read the post slower. I'm still not sure I understand...oh well.

Macrojack:

A macroeconomics term. As explained to me in Economics 101 ... once ice cream is great; two ice creams are very good; five ice creams make you sick. In other words, the more you consume, the lesser the incremental utility (enjoyment) you get for your money.

An audio metaphor might be ... a $400 amplifier (think NAD C320BEE) gets you 85% of the utility/enjoyment that an amplifier would give you. A $2000 amplifier (think Creek Destiny) gets you 95% of the utility/enjoyment. That extra 10% utility would cost you $1600, as opposed to the first 85% would cost you (on average) less than $50 for each 10% utility. That's the law of diminishing returns, in a nutshell.

BTW, most things work this way.

REgards, Rich

Mt10425 -- Ha! Yeah, I wasn'r really explaining the term, which Markphd and Rar1 did superbly. I wanted to make a point about the relationship between price and value in our hobby.

Drubin-It sure was fun to read though. ;)

I hear ya Drubin. Clear as day to this audiophool..