Think of a person who likes having impact on their social networks. To do so, they always follow the las trends and adapts them to their profile (copies dance moves, open threads, answers DMs, etc.). As their number of followers increase, they are more satisfied. Let us say that this satisfaction is represented by this usefulness function u(f)=f2, where f represents the number of followers. Explain what the law of diminishing marginal returns consists of and if it is complied with in this case. Justify your answer.

Think of a person who likes having impact on their social networks. To do so, they always follow the las trends and adapts them to their profile (copies dance moves, open threads, answers DMs, etc.). As their number of followers increase, they are more satisfied. Let us say that this satisfaction is represented by this usefulness function u(f)=f2, where f represents the number of followers. Explain what the law of diminishing marginal returns consists of and if it is complied with in this case. Justify your answer.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 8QP

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